Pacific Gas and Electric Company is a large gas and electric utility operating i
ID: 2478048 • Letter: P
Question
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:
a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to two decimal places.
b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years. Round your answers to the nearest whole percentage.
Earnings per share growth as a percent of Year 1 (base year)
Net income growth as a percent of Year 1 (base year)
Fiscal Years Ended(in millions) Year 3 Year 2 Year 1 Net income $830 $858 $1,113 Preferred dividends $14 $14 $14 Average number of common shares outstanding 424 401 382
Explanation / Answer
Solution:
Earnings per share Year 3 Year 2 Year 1 Net Income 830 858 1,113 Less: Preferred dividends 14 14 14 Earnings Available to common stock holders 816 844 1,099 Average number of common stock outstandings 424 401 382 Earnings per share = Earnings available to common stock holders / Average number of common stock outstandings 1.92 2.10 2.88Related Questions
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