Series 7 practice questionmediumAnalysis and Valuation 531
A stock selling at $26 with earnings per share of $2 has a price-to-earnings ratio of:
- A13✓ Correct answer
- B2
- C15
- D11
Explanation
Why A — 13
The P/E ratio equals market price per share divided by earnings per share. $26 divided by $2 equals 13.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Information & Recommendations questions
- A customer buys $4,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is:
- A stock selling at $32 with earnings per share of $2 has a price-to-earnings ratio of:
- A customer buys stock on margin for $5,000 and deposits 50%. If the market value later falls to $4,500, the customer’s…
- A stock selling at $22 with earnings per share of $2 has a price-to-earnings ratio of: