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Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The
Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years: Caterpillar Deere Year 2 Year 1 Year 2 Year 1 Net income $6,147 $754 $2,368 $2,159 Average number of common shares outstanding 591 592 323 320 a. Determine the earnings per share in Year 2 and Year 1 for each company. Neither Caterpillar nor Deere have any preferred stock outstanding. Round your answers to two decimal places. Caterpillar Deere Year 2 X per share X per share b. Evaluate the relative profitability of the two companies. Year 1 X per share X per share Deere's earnings per share for Year 1 is higher than Caterpillar's from Year 1 to Year 2, the earnings per share for both companies increased Caterpillar appears to be the more profitable company. However, . Overall
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