Determine the earnings per share for each company. Round to the nearest cent. Which company appears more profitable from a total net income perspective? Which company appears more profitable from an earnings-per-share perspective? From a stockholder’s perspective, is net income or earnings per share the better relative earnings measure between the two banks?
Determine the earnings per share for each company. Round to the nearest cent. Which company appears more profitable from a total net income perspective? Which company appears more profitable from an earnings-per-share perspective? From a stockholder’s perspective, is net income or earnings per share the better relative earnings measure between the two banks?
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 12.4ADM: BBT and Regions Financial: Earnings per share BBT Corporation and Regions Financial Corporation are...
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Question
BB&T Corporation (BBT) and Regions Financial Corporation (RF) 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):
BB&T | Regions Financial | |
---|---|---|
Net income | $2,458 | $1,158 |
Preferred dividends | $167 | $64 |
Average number of common shares outstanding | 815 | 1,255 |
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Determine the earnings per share for each company. Round to the nearest cent.
-
Which company appears more profitable from a total net income perspective?
-
Which company appears more profitable from an earnings-per-share perspective?
-
From a stockholder’s perspective, is net income or earnings per share the better relative earnings measure between the two banks?
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