AFLAC, Inc., is the largest accident and health insurer in the United States. The stockholders equity section

Question:

AFLAC, Inc., is the largest accident and health insurer in the United States. The stockholders’ equity section of the balance sheet disclosed the following for the ending date of a recent year: Shareholders’ equity (in millions):

Common stock ....................$ 533

Retained earnings .....................6,992

Accumulated other comprehensive income, net of taxes ......2,609

Less: Treasury stock ....................2,561

Total shareholders’ equity ................$7,573

The statement of stockholders’ equity showed the following changes in the retained earnings balance for the year:

Retained earnings (in millions):

Beginning of year ..................$5,885

Net income .....................1,299

Dividends declared on common stock ...........(192)

End of year ......................$6,992

There were 507,333,000 shares outstanding for computing earnings per share. The market price of the common stock averaged $40 per share during the year.

Determine for the common stock (rounding to two decimal places):

a. Earnings per share.

b. Dividends per share.

c. Price-earnings ratio.

d. Dividend yield.

Common Stock
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