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Company Shares

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Senior Manager
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Company Shares  [#permalink]

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New post 18 May 2009, 09:28
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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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Re: Company Shares  [#permalink]

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New post 18 May 2009, 10:17
1
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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A merchant and a corporation  [#permalink]

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New post 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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Re: A merchant and a corporation  [#permalink]

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New post 18 May 2009, 10:43
Please post in the appropriate forum

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Re: Company Shares  [#permalink]

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New post 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

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Re: Company Shares &nbs [#permalink] 18 May 2009, 11:12
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