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Expert replies
by trindadesn » Sat Jan 23, 2010 2:28 am
hi need some help with these please.

1. 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



2. A man who died left an estate valued at $111,000. His will stipulated that his estate was to be distributed so that each of his three children received from the estate and his previous gifts, combined, the same total amount. If he had previously given his oldest child $15,000, his middle child $10,000, and his youngest $2,000, how much did the youngest child receive from the estate?
(A) $50,000
(B) $48,000
(C) $46,000
(D) $44,000
(E) $39,000
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Source: — Problem Solving |

by sanju09 » Sat Jan 23, 2010 3:50 am
hi need some help with these please.


1. 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

Total earnings for the first 9 months = $7.20 × 5,000,000 = $36,000,000.

Total earnings in the fourth quarter = $1.25 × 10,000,000 = $12,500,000.

Total earnings for the year = $36,000,000 + $12,500,000 = $48,500,000.

∴ The average annual earnings per share = $48,500,000/10,000,000 = [spoiler]$4.85[/spoiler].

[spoiler]C[/spoiler]
2. A man who died left an estate valued at $111,000. His will stipulated that his estate was to be distributed so that each of his three children received from the estate and his previous gifts, combined, the same total amount. If he had previously given his oldest child $15,000, his middle child $10,000, and his youngest $2,000, how much did the youngest child receive from the estate?
(A) $50,000
(B) $48,000
(C) $46,000
(D) $44,000
(E) $39,000
Overall, the man wanted to make three equal shares of the value $111,000 + $15,000 + $10,000 + $2,000 = $138,000; each share equals $138,000/3 = $46,000. Since the youngest child has received worth only $2000 so far, from man's previous gifts, so he deserves to get a value of [spoiler]$44,000 [/spoiler]from the estate now.

[spoiler]D[/spoiler]

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The mind is everything. What you think you become. -Lord Buddha



Sanjeev K Saxena
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