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Apple Google Sirius XM Pandora Media Live Nation Beta 1.02 1.51 0.79 2.02 1.52 E

ID: 2824822 • Letter: A

Question

Apple

Google

Sirius XM

Pandora Media

Live Nation

Beta

1.02

1.51

0.79

2.02

1.52

EPS

10.36

23.56

$ 0.15

$ -2.30

$ -0.54

P/E

18.37

48.94

46.8

N/E

N/E

Dividend

2.92

N/A

0.04

N/A

N/A

Market Cap

935.6B

796.96B

31.08B

2.05B

10.36B

Is a possible gauge of the full amount earned on a stock investment the EPS times the number of shares purchased?

Apple

Google

Sirius XM

Pandora Media

Live Nation

Beta

1.02

1.51

0.79

2.02

1.52

EPS

10.36

23.56

$ 0.15

$ -2.30

$ -0.54

P/E

18.37

48.94

46.8

N/E

N/E

Dividend

2.92

N/A

0.04

N/A

N/A

Market Cap

935.6B

796.96B

31.08B

2.05B

10.36B

Explanation / Answer

No, EPS*number of shares purchased is not a possible gauge of the full amount earned on a stock investment.

EPS = Profit after tax/Total no. of equity shares issued.

The reason why the metric (EPS*number of shares purchased ) is not a possible gauge of the full amount earned on a stock investment is that the impact of dividends are ignored. Investors earn dividend on stocks that they have purchased but EPS metric does not consider dividend earnings from a stock.

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