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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.

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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 companies reported the following data (in millions) for two recent years: Caterpillar Deere Year 2 Year 1 Year 2 Year 1 Net income Average number of common shares outstanding $6,147 591 $754 $2,368 592 323 $2,159 320 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 per share per share b. Evaluate the relative profitability of the two companies. Year 1 per share per share earnings per share for Year 1 is higher than Overall, However, from Year 1 to Year 2, the earnings per share for both companies appears to be the more profitable company.

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