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24 October, 07:09

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. $ millions, except per share amounts 2015 2014 2013 Net income $16,888 $4,833 d. Answer Preferred stock dividends $1,483 b. Answer $1,349 Net income applicable to common shareholders $15,405 c. Answer $10,583 Average common shares outstanding 10,462.282 10,527.818 e. Answer Basic earnings per share a. Answer $0.40 $0.94

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  1. 24 October, 07:33
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    Answer and Explanation:

    The computations are as follows

    a. For basic earning per share

    = Net income : Average number of outstanding common shares

    = ($16,888 - $1,483) : 10462.282 shares

    = $1.47 per share

    b. Preferred stock dividends = Net income - Net income applicable to common shareholders

    = $4,833 - $4,211

    = $622

    c. The net income applicable to common shareholders is

    = Average number of common shares outstanding * Basic earning per share

    = 10,527.818 * $0.40

    = $4,211

    d. The net income is

    = Preference stock dividend + Net income applicable to common shareholders

    = $1,349 + $10,583

    = $11,932

    e. Average number of common shares outstanding is

    = Net income for common shareholders : basic earning per share

    = $10,583 : $0.94

    = $11,258.51

    We simply applied the general formulas
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