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&TRegions FinancialNet income$2,458$1,158Preferred dividends$167$64Average number of common shares outstanding8151,255Determine 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?

Earnings Per Share (EPS) refers to the profit available on a single share.

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?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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	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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