Trailing P/E, Equity, page 319, Example 17

CFA Level II Equities
#1

Hi,

Question on page 317, example 17, on trailing P/E calculation beginning of 2012.

Will the answer be different if we are asked to calculate trailing P/E end of 2011? Do we use 2010 EPS for this?

I thought beginning of 2012 is same as end of 2011. Is it true?

Thanks.

#2

I get confused by this too. But I think the end of 2011 price and beginning of 2012 price are the same (110.56).

Because it asks for trailing P/E, we would use the t=0 EPS rather than t=1 which is 4.494. The same goes for the end of 07 / beginning of 08 trailing P/E. The price is 78.73 and the t=0 EPS at that point is 2.40.