BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Earnings

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 391
Joined: Sat Mar 02, 2013 5:13 amFollowed by: 4 members
Thanked: 50 times
by rakeshd347 » Mon Oct 14, 2013 5:54 pm
A corporation with 5,000,000 shares of publicly traded stock reported total earnings of $7.20 per share for the first 9 months of operation. If during the final quarter, the number of publicly listed shares was increased to 10,000,000, and fourth quarter earnings were reported at $1.25 per share, what are the average annual earnings per share based on the number of shares at the end of the year?

1.75
2.40
3.15
3.60
4.85
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
User avatar
Master | Next Rank: 500 Posts
Posts: 283
Joined: Sun Jun 23, 2013 11:56 pmFollowed by: 26 members
Location: Bangalore, India
Thanked: 97 times
GMAT Score:750

by ganeshrkamath » Mon Oct 14, 2013 7:45 pm
rakeshd347 wrote:A corporation with 5,000,000 shares of publicly traded stock reported total earnings of $7.20 per share for the first 9 months of operation. If during the final quarter, the number of publicly listed shares was increased to 10,000,000, and fourth quarter earnings were reported at $1.25 per share, what are the average annual earnings per share based on the number of shares at the end of the year?

1.75
2.40
3.15
3.60
4.85
Total earnings in the first 3 quarters = 5,000,000 * 7.2 = 36,000,000
Total earnings in the last quarter = 10,000,000 * 1.25 = 12,500,000
Total earnings = 36m + 12.5m = 48.5m
Total number of shares = 10m
Average earnings per share = 48.5/10 = 4.85

Choose E

Cheers
Every job is a self-portrait of the person who did it. Autograph your work with excellence.

Kelley School of Business (Class of 2016)
GMAT Score: 750 V40 Q51 AWA 5 IR 8
https://www.beatthegmat.com/first-attemp ... tml#688494
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 269
Joined: Thu Sep 19, 2013 12:46 amFollowed by: 7 members
Thanked: 94 times

by mevicks » Mon Oct 14, 2013 8:02 pm
rakeshd347 wrote:A corporation with 5,000,000 shares of publicly traded stock reported total earnings of $7.20 per share for the first 9 months of operation. If during the final quarter, the number of publicly listed shares was increased to 10,000,000, and fourth quarter earnings were reported at $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) 1.75
B) 2.40
C) 3.15
D) 3.60
E) 4.85
First three Quarters earnings:
1 Share --> $7.20
5 * 10^6 shares --> (5 * 10^6) * 7.20

Last Quarter earnings:
(5 * 10^6) shares are added
1 share --> $1.25
5 * 10^6 shares --> $(5 * 10^6) * 1.25

Earnings Per Share for the entire quarter :
[(5 * 10^6)*7.20 + (5 * 10^6)*1.25] / (10^7) = (5 * 10^6)(7.20 + 1.25) / (10^7) = 8.45 / 2 = 4.85

Answer E

Regards,
Vivek
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Tue Oct 15, 2013 2:13 am
rakeshd347 wrote:A corporation with 5,000,000 shares of publicly traded stock reported total earnings of $7.20 per share for the first 9 months of operation. If during the final quarter, the number of publicly listed shares was increased to 10,000,000, and fourth quarter earnings were reported at $1.25 per share, what are the average annual earnings per share based on the number of shares at the end of the year?

1.75
2.40
3.15
3.60
4.85
5,000,000 shares : 10,000,000 shares = 1:2.
We can plug in ANY values that satisfy this ratio, since the problem asks only for the AVERAGE annual earnings per share.
Total earnings for 1 share that earns $7.20 = $7.20.
Total earnings for 2 shares that each earn $1.25 = $2.50.
At the end of the year, the average annual earnings for the 2 shares = (total earnings)/(number of shares) = (7.20 + 2.50)/2 = 4.85.

The correct answer is E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1