Response to the following problem:
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.