Blossom Bank has 640,000,000 shares of common stock outstanding that are currently selling for $34.40 per share on the New York Stock Exchange. If Blossom's net income was $2,560,000,000 in the year that just ended, what was its earnings per share and what is its current price-earnings ratio? (Round answers to 2 decimal places, e.g. 15.25.) Earnings per share $ Price-earnings ratio times If the typical price-earnings ratio for a bank is currently 15, what does the price-earnings ratio for Blossom tell you about its prospects? The market is optimistic about Blossom's prospects than it is about the prospects of the typical bank.
Blossom Bank has 640,000,000 shares of common stock outstanding that are currently selling for $34.40 per share on the New York Stock Exchange. If Blossom's net income was $2,560,000,000 in the year that just ended, what was its earnings per share and what is its current price-earnings ratio? (Round answers to 2 decimal places, e.g. 15.25.) Earnings per share $ Price-earnings ratio times If the typical price-earnings ratio for a bank is currently 15, what does the price-earnings ratio for Blossom tell you about its prospects? The market is optimistic about Blossom's prospects than it is about the prospects of the typical bank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Bank has 640,000,000 shares of common stock outstanding that are currently selling for $34.40 per share on the New York
Stock Exchange. If Blossom's net income was $2,560,000,000 in the year that just ended, what was its earnings per share and what is
its current price-earnings ratio? (Round answers to 2 decimal places, e.g. 15.25.)
Earnings per share
Price-earnings ratio
$
The market is
times
If the typical price-earnings ratio for a bank is currently 15, what does the price-earnings ratio for Blossom tell you about its
prospects?
optimistic about Blossom's prospects than it is about the prospects of the typical bank.
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