Series 7 practice questionmediumAnalysis and Valuation 526
A stock selling at $32 with earnings per share of $2 has a price-to-earnings ratio of:
- A2
- B18
- C14
- D16✓ Correct answer
Explanation
Why D — 16
The P/E ratio equals market price per share divided by earnings per share. $32 divided by $2 equals 16.
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 stock selling at $26 with earnings per share of $2 has a price-to-earnings ratio of:
- A stock selling at $22 with earnings per share of $2 has a price-to-earnings ratio of:
- A customer buys $4,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is:
- A stock selling at $28 with earnings per share of $2 has a price-to-earnings ratio of: