EPS OBJ. 7 Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows:

Fiscal Years Ended

(in millions)

Year 3 Year 2 Year 1 Net income $830 $858 $1,113 Preferred dividends $14 $14 $14 Average number of common shares outstanding 424 401 382

a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to the nearest cent.

b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years.