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Senior Manager
Joined: 07 Feb 2008
Posts: 317
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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
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Senior Manager
Joined: 08 Jan 2009
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Re: Company Shares [#permalink]
 18 May 2009, 10:17
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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
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Senior Manager
Joined: 07 Feb 2008
Posts: 317
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A merchant and a corporation [#permalink]
18 May 2009, 10:19
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) $9.70
Please don't forget your explanations. Thanks.
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Founder
Status: Traveling...
Affiliations: UA-1K, SPG-G, HH-D
Joined: 04 Dec 2002
Posts: 10408
Location: United States (WA)
GMAT 1: 750 Q49 V42
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Re: A merchant and a corporation [#permalink]
18 May 2009, 10:43
Please post in the appropriate forum company-shares-78612.html
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Senior Manager
Joined: 08 Jan 2009
Posts: 338
Followers: 2
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Re: Company Shares [#permalink]
18 May 2009, 11:12
Purchase price = 60$
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
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Re: Company Shares
[#permalink]
18 May 2009, 11:12
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