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A stock with a current P/E of 17 is selling at $74.50 per share.
What are the company's earnings in the trailing 12 months?
Suggested Answer: A
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about $4.28. Divide the market price by the P/E.
34 comments · newest first
KA
Katina
11 months ago
Definitely not impossible, just do the math!
BR
Brett
11 months ago
Seems too easy, can we really calculate it like that?
VI
Virgina
12 months ago
Wait, how do we know it’s not $6.20?
LA
Launa
12 months ago
Totally agree, $4.28 makes sense!
GE
Gerald
1 year ago
Earnings are about $4.28 based on that P/E.
DE
Devorah
1 year ago
I’m not sure if we can calculate the earnings directly from this info. It seems like we need more context, but I guess we can try the math.
SA
Sanjuana
1 year ago
I practiced a similar question last week, and I think the earnings should be around $4.28, but I’m not completely confident.
KE
Kenneth
1 year ago
I think if we divide the stock price by the P/E, we can find the earnings. So, $74.50 divided by 17 should give us the answer, right?
HA
Harrison
1 year ago
I remember that the P/E ratio is calculated by dividing the price per share by the earnings per share, but I’m not sure how to rearrange it for this question.
RE
Ressie
1 year ago
I'm a bit confused on this one. The information given doesn't seem complete to me. I'm not sure I can confidently calculate the earnings from just the stock price and P/E ratio.
MA
Malcom
1 year ago
Okay, let me think this through step-by-step. The stock price is $74.50 and the P/E ratio is 17, so the earnings should be $74.50 / 17 = $4.38. I think that's the right approach.
CL
Clorinda
1 year ago
Hmm, I'm a little unsure about this. I know the formula is earnings = stock price / P/E ratio, but I'm not sure if I'm missing any other factors.
YA
Yan
1 year ago
This one seems straightforward - I just need to use the P/E ratio and the stock price to calculate the earnings.
KE
Kent
2 years ago
Alright, let's think this through logically. If the stock price is $74.50 and the P/E ratio is 17, then the earnings must be about $4.28. Option A is the way to go, my dudes.
SA
Santos
2 years ago
Woah, hold on, are we forgetting the most important factor here? The stock price is $74.50, which is a totally random number. Clearly, this is a question designed to make us all look like fools. Option D it is!
RO
Ronald
2 years ago
Yeah, it's definitely a trick question. Option D is the only logical answer.
DA
Dannie
2 years ago
I agree, the stock price seems arbitrary. Option D is the safest choice.
LA
Larae
2 years ago
I'm not sure, but I think it's D) impossible to calculate from this information.
AM
Ammie
2 years ago
I don't know, guys. This seems a bit too easy. What if the company has been cooking the books? Option C, $1.70, could be the real answer. You never know these days.
CH
Cherelle
2 years ago
Hold up, I'm not buying it. This information is not enough to calculate the earnings. It's gotta be option D. Trick question, am I right?
DO
Dottie
2 years ago
Definitely a tricky one, but I'm going with option D as well.
BO
Bok
2 years ago
I think we're all on the same page here, option D it is.
MA
Marget
2 years ago
Yeah, without more information, it's impossible to calculate the earnings.
GE
Georgene
2 years ago
I agree, it seems like a trick question. Option D is the safest bet.
MO
Monte
2 years ago
I agree with Eladia, the P/E ratio is 17 so earnings should be around $4.28.
IR
Irving
2 years ago
Nah, man, that can't be right. With a P/E of 17 and a stock price of $74.50, the earnings have got to be at least $6.20. Option B all the way!
FA
Fabiola
2 years ago
Option B it is then, $6.20 earnings in the trailing 12 months.
AI
Ailene
2 years ago
Definitely, the P/E ratio and stock price point to earnings of $6.20.
GE
Gearldine
2 years ago
Yeah, I agree. Option B seems like the right choice.
LA
Laura
2 years ago
I think the earnings must be around $6.20.
EL
Eladia
2 years ago
I think the answer is A) about $4.28.
HE
Henriette
2 years ago
Hmm, let's see. The P/E ratio is 17, and the stock price is $74.50. Okay, I'm thinking option A, about $4.28, seems like the right answer here.
HU
Huey
2 years ago
Yes, the company's earnings in the trailing 12 months would be about $4.28 with a P/E ratio of 17 and a stock price of $74.50.
LE
Leigha
2 years ago
I agree, option A, about $4.28, seems to be the correct answer based on the information given.