The solution here is 30,400,000 + 189,100,000 = 219,500,000
219,500,000 (1-.34) = 144,870,000
144,870,000 / 106,530,610 = $1.36
Where do they find the 34% tax rate? I can't derive it from the given income statement. And what is the deal with tine "income taxes - current" and "income taxes - future"?作者: luda002 时间: 2011-7-13 13:32
it states in the question theres a tax rate of 34%.... if you are talking about question #29. haha作者: yalo 时间: 2011-7-13 13:32
freakingout Wrote:
-------------------------------------------------------
> So when calculating "underlying" EPS, we have to
> add back the non-recurring costs, but no need to
> when calculating EPS, is it right?
>
> Except from non-recurring costs, is there anything
> else we need to pay attention to when calculating
> underlying EPS?
Right, the underlying EPS is an analyst adjusted EPS while reported EPS includes all those non-recurring gain/losses.
NO EXCUSES作者: llxx 时间: 2011-7-13 13:32
I love to see a good explanation/formula for "underlying EPS" 'cause I just skipped the question since I had no idea what they were asking.作者: Otabek 时间: 2011-7-13 13:32
Thanks, thanks something I can remember 作者: maryli 时间: 2011-7-13 13:32
what about normalized, vs. underlying vs. reported...
Schweser Mock AM had a question on that. regarding using with EPS would provide the highest P/E number.
from the data provided Normalize vs. Underlying was the same.
and they were both higher EPS numbers that the reported. So I selected that Reported EPS would give the highest P/E - WRONGLY!
CP作者: OmarAdnan 时间: 2011-7-13 13:32
cpk which question are you talking about?
underlying means adjusting for extraordinary or unusual items.
normalzied means adjusting (i.e. smoothign) for the busienss cycle
so if reported was the lowest eps then why is it incorect that with reported you get the highest p/e? whats the explanation?作者: 5566 时间: 2011-7-13 13:32
Their answer was:
Industry and Company was three years into its expansion cycle. So in all likelihood, normalized earnings would be lower than the reported earnings.
They had also provided info with regards to some environmental remediation that the company had to undertake in this cycle - so that needed to be added back - so the underlying earnings would be higher than reported earnings.
given this - the normalized earnings would be the lowest of the lot...
and P/E based on that would be the highest.
CP作者: sameeragarwal 时间: 2011-7-13 13:32
ok that makse sense...didnt realize that you had to make further adjustments to the reported eearnings.
