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# Company Shares

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Senior Manager
Joined: 07 Feb 2008
Posts: 315
Followers: 1

Kudos [?]: 59 [0], given: 1

Company Shares [#permalink]  18 May 2009, 08:28
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (01:49) wrong based on 0 sessions
A corporation with 5,000,000 shares of publicly listed stock reported total earnings of $7.20 per share for the first 9 months of operation. During the final quarter the number of publicly listed shares was increased to 10,000,000 shares, and fourth quarter earnings were reported as$1.25 per share. What are the average annual earnings per share based on the number of shares at the end of the year?

(A) $1.83 (B)$2.43
(C) $4.85 (D)$8.45
(E) $9.70 Please don't forget your explanations. Thanks Senior Manager Joined: 08 Jan 2009 Posts: 329 Followers: 2 Kudos [?]: 86 [1] , given: 5 Re: Company Shares [#permalink] 18 May 2009, 09:17 1 This post received KUDOS For the First 9 months R1 = 5 * 10^6 * 7.2 = 36 * 10^6 For the next 3 months R2 = 10 * 10^6 * 1.25 = 12.5 * 10^6 Total revenue = R1 + R2 = 48.5 * 10^6 Total no of shares = 10 * 10^6 So average annual earnings per share = 48.5 * 10^6/10 * 10^6 = 4.85$

Ans C
Senior Manager
Joined: 07 Feb 2008
Posts: 315
Followers: 1

Kudos [?]: 59 [0], given: 1

A merchant and a corporation [#permalink]  18 May 2009, 09:19
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale? (A)$0
(B) $3 (C)$4
(D) $12 (E)$15

A corporation with 5,000,000 shares of publicly listed stock reported total earnings of $7.20 per share for the first 9 months of operation. During the final quarter the number of publicly listed shares was increased to 10,000,000 shares, and fourth quarter earnings were reported as$1.25 per share. What are the average annual earnings per share based on the number of shares at the end of the year?
(A) $1.83 (B)$2.43
(C) $4.85 (D)$8.45
(E) $9.70 Please don't forget your explanations. Thanks. Founder Affiliations: AS - Gold, UA - Silver, HH-Diamond Joined: 04 Dec 2002 Posts: 12740 Location: United States (WA) GMAT 1: 750 Q49 V42 GPA: 3.5 WE: Information Technology (Hospitality and Tourism) Followers: 2614 Kudos [?]: 12400 [0], given: 3831 Re: A merchant and a corporation [#permalink] 18 May 2009, 09:43 Expert's post Please post in the appropriate forum company-shares-78612.html _________________ Founder of GMAT Club Just starting out with GMAT? Start here... | Want to know your GMAT Score? Try GMAT Score Estimator Need GMAT Book Recommendations? Best GMAT Books Co-author of the GMAT Club tests Have a blog? Feature it on GMAT Club! GMAT Club Premium Membership - big benefits and savings Senior Manager Joined: 08 Jan 2009 Posts: 329 Followers: 2 Kudos [?]: 86 [0], given: 5 Re: Company Shares [#permalink] 18 May 2009, 10:12 Purchase price = 60$
SP = 60$+ .25 SP .75SP = 60$ SP = 80 $He give a discount of 20 % The final price = 80 * .8 = 64 Profit = 64 - 60 = 4$

Ans C
Re: Company Shares   [#permalink] 18 May 2009, 10:12
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