20X2 20X1 Net Income $150,000 $120,000 Cash dividends paid on preferred stock 15,000 15,000 Cash dividends paid on common stock 42,000 38,000 Average number of preferred shares outstanding 20,000 20,000 Average number of common shares outstanding 105,000 95,000 Market price per share of common stock at year-end 25.10 22.70 Earnings per share for 20x2 would be reported as and note if the level of profitability per share has increased or decreased from the prior year. a. $1.29 and profitability has increased. b. $1.20 and profitability has increased. Oc $1.08 and profitability has decreased. d. $1.43 and profitability has decreased. QUESTION 12 Refer to the financial information for Olive above. The Price to Earnings (PE) ratio for 20X2 is riskiness to the investor. and note the relative level of . a 20.36 and low risk. b. 19.46 and low risk. c. 20.63 and high risk. d. 18.97 and high risk