Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows: Fiscal Years Ended (in millions) Year 3 Year 2 Year 1 $888 $1,450 $828 Net income Preferred dividends $14 $14 $14 Average number of common shares outstanding 444 484 468 a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the nearest cent. b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years.
Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows: Fiscal Years Ended (in millions) Year 3 Year 2 Year 1 $888 $1,450 $828 Net income Preferred dividends $14 $14 $14 Average number of common shares outstanding 444 484 468 a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the nearest cent. b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pacific Gas and Electric Company is a large gas and electric utility operating in northern
and central California. Three recent years of financial data for Pacific Gas and Electric
Company are as follows:
Fiscal Years Ended
(in millions)
Year 3
Year 2
Year 1
$888
$1,450
$828
Net income
Preferred dividends
$14
$14
$14
Average number of common shares outstanding
444
484
468
a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the
nearest cent.
b. Evaluate the growth in earnings per share for the three years in comparison to the
growth in net income for the three years.
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