Determine the price-earnings ratio for all three years

Assignment Help Corporate Finance

Reference no: EM13900829

Citigroup, Inc., one of the largest financial services firms in the world, disclosed the following retained earnings information in its statement of stockholders' equity:.

	2004	2003	2002
Retained earnings balance, beginning of year	$ 93,483	$81,403	$69,803
Net income	17,046	17,853	15,276
Common dividends	(8,307)	(5,702)	(3,593)
Preferred dividends	(68)	(71)	(83)
Balance, end of year	$102,154	$93,483	$81,403

The average common shares for determining basic earnings per share for the three most recent years were as follows:

2004: 5,107.2

2003: 5,093.3

2002: 5,078.0

Total common stockholders' equity and the stock price at year-end were as follows:

	Dec. 31, 2004	Dec. 31, 2003	Dec. 31, 2002
Common stockholders' equity	$108,166	$96,889	$85,318
Common stock price	48.18	48.54	32.83

a. Determine the earnings per common share for all three years. Round to two decimal places.

b. Determine the book value per common share for all three years. Round to two decimal places.

c. Determine the price-earnings ratio for all three years. Round to two decimal places.

d. Determine the price-book ratio for all three years. Round to two decimal places.

e. Interpret the trend in price-earnings and price-book ratios for the three years.

Reference no: EM13900829

Questions Cloud

How much profit or loss would they earn : Suppose that this firm operates in a perfectly competitive market. If the market price in this perfectly competitive market is $11 how much output would the firm choose to produce? How much profit/loss would they earn

Make the journal entry to record stein purchase : Make the journal entry to record Stein's purchase of the partners' interest.

Escalating biodiversity depletion across the globe : In response to growing concerns about escalating biodiversity depletion across the globe, the landmark Convention on Biological Diversity (CBD) was launched two decades ago. This solution examines the impact that the Convention has had on biodiver..

What is required to implement an organization''s commitment : What is required to implement an organization's commitment to social responsibility? What are the main obstacles to implementing socially responsible policies? Name specific actions that can be taken toward increased social responsibility.

Determine the price-earnings ratio for all three years : Determine the price-earnings ratio for all three years. Round to two decimal places. Determine the price-book ratio for all three years. Round to two decimal places.

What is the role of the information and news media : What is the role of the information and news media in the shaping of political opinions?

Compute the capital account balance of each partner : 1. Compute the capital account balance of each partner after the liquidation of assets and the payment of creditors.

Analyze the different approaches to innovation : Analyze the different approaches to innovation discussed in this chapter to determine which approach you think would be the greatest value to the greatest number of organizations. Explain your rationale.

Draw diagrams with domestic supply and demand curves : Draw diagrams with domestic supply and demand curves for each country and each of the two goods. As a result of NAFTA, the United States now imports tomatoes from Mexico and the United States now exports poultry to Mexico. How would you expect the..

User Account

All Pages