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.

Answered: Determine the earnings per share for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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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