Question

Understanding EPS Calculations
On its Form 10-K for the year ended December 31, 2015, Bank of America Corp. reported information related to basic earnings per share.

Fill in the missing information.

Rounding instruction:

Round answer a. to two decimal places.
Round answer b., c., & d. to the nearest million.
Round answer e. to three decimal places.

$ millions, except per share amounts		2015		2014		2013
Net income		$16,388		$4,833	d.	Answer
Preferred stock dividends		$1,483	b.	Answer		$1,349
Net income applicable to common shareholders		$14,905	c.	Answer		$11,072
Average common shares outstanding		10,462.282		10,527.818	e.	Answer
Basic earnings per share	a.	Answer		$0.38		$0.94

Answer 1

Fill in the missing information.

Rounding instruction:

Round answer a. to two decimal places.
Round answer b., c., & d. to the nearest million.
Round answer e. to three decimal places.

$ millions, except per share amounts		2015		2014		2013
Net income		$16,388		$4,833	d.	11072+1349 = 12421
Preferred stock dividends		$1,483	b.	4833-4001 = 832		$1,349
Net income applicable to common shareholders		$14,905	c.	10527.818*.38 = 4001		$11,072
Average common shares outstanding		10,462.282		10,527.818	e.	11072/.94 = 11778.723
Basic earnings per share	a.	14905/10462.282 = 1.42		$0.38		$0.94