Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows: Fiscal Years Ended (in millions) Year 3 Year 2 Year 1 $888 $1,450 $828 Net income Preferred dividends $14 $14 $14 Average number of common shares outstanding 444 484 468 a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the nearest cent. b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years.

Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows: Fiscal Years Ended (in millions) Year 3 Year 2 Year 1 $888 $1,450 $828 Net income Preferred dividends $14 $14 $14 Average number of common shares outstanding 444 484 468 a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the nearest cent. b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years.

Name: Pacific Gas and Electric Company is a large gas and electric utility
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Description: Pacific Gas and Electric Company is a large gas and electric utility operating in northernand central California. Three recent years of financial data for Pacific Gas and ElectricCompany are as follows:Fiscal Years Ended(in millions)Year 3Year 2Year

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12.2ADM

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