FINRA Series 7

Category - Series 7

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?
  1. about $4.28
  2. $6.20
  3. $1.70
  4. impossible to calculate from this information
Explanation
Answer: A - about $4.28. Divide the market price by the P/E.
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