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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 18
BB T and Regions Financial: Earnings per share
BB T Corporation and Regions Financial Corporation are large regional banking companies. The net income and average common shares outstanding for both companies were reported in recent financial reports as follows (in millions):
In addition, BB T had $2,603,000,000 in par value preferred stock outstanding during the period. The preferred stock had an average dividend rate of 5.7%. Regions Financial did not pay any preferred cash dividends.
A.. Determine the preferred dividend for BB T. (Round to the nearest million dollars.)
B. Determine the earnings per share for each company. (Round to the nearest cent.)
C. Which company appears more profitable from a total net income perspective?
D. Which company appears more profitable from an earnings per share perspective?
E. From a stockholder's perspective, is net income or earnings per share the better relative earnings measure between the two banks?
BB T Corporation and Regions Financial Corporation are large regional banking companies. The net income and average common shares outstanding for both companies were reported in recent financial reports as follows (in millions):
In addition, BB T had $2,603,000,000 in par value preferred stock outstanding during the period. The preferred stock had an average dividend rate of 5.7%. Regions Financial did not pay any preferred cash dividends.
A.. Determine the preferred dividend for BB T. (Round to the nearest million dollars.)
B. Determine the earnings per share for each company. (Round to the nearest cent.)
C. Which company appears more profitable from a total net income perspective?
D. Which company appears more profitable from an earnings per share perspective?
E. From a stockholder's perspective, is net income or earnings per share the better relative earnings measure between the two banks?
Explanation
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a.Preferred Dividend: It refers to the d...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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