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# Company Shares

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Senior Manager
Joined: 07 Feb 2008
Posts: 293

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18 May 2009, 09:28
00:00

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(N/A)

Question Stats:

0% (00:00) correct 100% (01:49) wrong based on 0 sessions

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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

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Senior Manager
Joined: 08 Jan 2009
Posts: 310

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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
Senior Manager
Joined: 07 Feb 2008
Posts: 293
A merchant and a corporation  [#permalink]

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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

Founder
Joined: 04 Dec 2002
Posts: 17215
Location: United States (WA)
GMAT 1: 750 Q49 V42
Re: A merchant and a corporation  [#permalink]

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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: 310

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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!

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Re: Company Shares &nbs [#permalink] 18 May 2009, 11:12
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