A company reported $555,000 of profit in the current year. Their year-end is December 31. It also declared $87,000 of dividends on preferred shares for the same year. At the beginning of the year the company had 50,000 outstanding common shares and 5,000 preferred shares. The following transactions changed the number of shares outstanding during the year. Mar 1 Sold 2,000 preferred shares for cash July 1 Retired 2,000 common shares Nov 1 Completed a 3:1 share split for common shares. REQUIRED: 1. Calculate earnings per share on common shares for the current year. Show your calculations (Round your answer to the nearest penny.) 2. Last year's Earnings Per Share for this company was was $2.00/share. Which year has more favourable ratio? Explain why