Bank of America Corporation (BAC) and Wells Fargo & Company (WFC) are two large financial services companies. The following data (in millions) were taken from a recent year’s financial statements for both companies:

a. Compute the earnings per share for both companies.
b. Which company appears to be more profitable on an earnings-per-share basis?
c. Which company would you expect to have the larger quoted market price?

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Net income Preferred dividends Average number of common shares outstanding Bank of America $27,430 $1,432 9,390.5 Wells Fargo $19,549 $1,611 4,393.1