Free Bank of America Essay Sample
The statement of financial position for the year ended December 31, 2010 indicates that total value of assets of the Bank of America was $2.3 trillion. The bank’s assets were made of federal funds sold and securities borrowed or purchased under agreements to resell, trading account assets, debt securities, loans and leases, and property, plant and equipments. Bank of America finances its investment in assets mainly through long-term debt, and common equity. The bank does not have preferred share capital.
Total amount of long-term debt as at December 31, 2010 stood at $448,431 million. This was a 2 percent increase from 2009. According to the bank’s annual report of 2010, this increase was attributed to a new consolidation guidance strategy, which the bank adapted early in 2010. This consolidation strategy resulted into an increase of the bank’s liabilities, which included a long-term debt of $84.4 billion.
The total of the bank’s common equity was $228,248 million. This amount was made up of common shares fully issued and paid for. The bank’s annual report of 2010 reveals that, this was a 1.3 percent decrease (approximately $300,200 million) from the year 2009, whereby, the total value of common shares fully issued and paid for was $231,444 million. Information related to common equity indicate that, earning per share (EPS) was $-0.37. This was decrease from $-0.29 in 2009. Diluted earns per share were similar to EPS, both in 2010 and 2009. Dividend paid to equity shareholders was $0.04 per share. The shareholders had been paid the same amount during the previous year. The average market price per share (MPS) for the year 2011 was $13.34. From the bank’s financial report, it is clear that the bank utilizes more of borrowed capital to finance its investments in assets.