Citigroup, Inc., one of the largest financial services firms in the world, disclosed the following retained earnings information in its statement of stockholders' equity:.
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2004
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2003
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2002
|
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Retained earnings balance, beginning of year
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$ 93,483
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$81,403
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$69,803
|
|
Net income
|
17,046
|
17,853
|
15,276
|
|
Common dividends
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(8,307)
|
(5,702)
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(3,593)
|
|
Preferred dividends
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(68)
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(71)
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(83)
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Balance, end of year
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$102,154
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$93,483
|
$81,403
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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:
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Dec. 31, 2004
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Dec. 31, 2003
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Dec. 31, 2002
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Common stockholders' equity
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$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.