Determine the price-earnings ratio for all three years

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

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