Staples and OfficeMax compete in the retail office supply business. OfficeMax had a net income of $87 million for a recent year, whereas Staples had a net income of $985 million. OfficeMax had preferred dividends of $2 million. Staples had no preferred shares outstanding. The issued and outstanding common shares for each company were as follows:
Common Shares
(in millions)
OfficeMax .......................... 224
Staples .............................. 694
a. Determine the earnings per share for each company.
b. Evaluate the relative profitability of the two compa