Core Earnings

CFA Level II Equities
#1

Trying to validate a possible error.

Company has trailing 12 month EPS of 20.57.

Included in that number is a $0.45/share restructuring charge and a one time charge of $0.90/share for a one time expense. Both charges shouldn’t occur in the future.

Should 12-month EPS based on underlying earnings be $19.22 or $21.92?

#2

$21.92

#3

those are charges which would lower earnings ; if they are not considered to happen again, they should be added back

#4

Great thats what I thought… The mock I took has it 19.22 which was weird… and I dont have an erratum lol.

#5

Which mock was it?

#6

Boston