National City Bank has 686,900,000 shares of common stock outstanding that are currently selling for $ 47.88 per share on the New York Stock Exchange. If National City’s net income was $ 3,915,330,000 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 timesIf the typical price-earnings ratio for a bank is currently 15, what does the price-earnings ratio for National City tell you about its prospects?The market is (more or less?) optimistic about National City’s prospects than it is about the prospects of the typical bank.

The question is based on the concept of Financial Management.

Answered: National City Bank has 686,900,000…

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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National City Bank has 686,900,000 shares of common stock outstanding that are currently selling for $ 47.88 per share on the New York Stock Exchange. If National City’s net income was $ 3,915,330,000 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.)