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Question 7.4: Trailing Twelve Months On 15 July, an analyst is examining a......

Trailing Twelve Months

On 15 July, an analyst is examining a company with a fiscal year ending on 31 December. Use the following data to calculate the company’s trailing 12 month earnings (for the period ended 30 June 2010):

  • Earnings for the year ended 31 December, 2009: $1,200;
  • Earnings for the six months ended 30 June 2009: $550; and
  • Earnings for the six months ended 30 June 2010: $750.
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The company’s trailing 12 months earnings is $1,400, calculated as $1,200 – $550 + $750.

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