Question

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.

Answer 1

Given 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	$15,888	$4,833	$11,431
Preferred stock dividends	$1,483	$1,043	$1,349
Net income applicable to common shareholders	$14,405	$3,790	$10,082
Average common shares outstanding	10,462.282	10,527.818	10,725.532
Basic earnings per share	$1.38	$0.36	$0.94

a. $14,405 / 10,462.282 = $1.38 per share

b. $4,833 – $3,790 = $1,043

c. 10,527.818 shares × 0.36 EPS = $3,790

d. 10,082 + 1,349 = 11,431e. 10,082 / 0.94= 10,725.53210,725.532