Question
Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The
Dakota Inc. and Jersey & 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:
Dakota | Jersey | ||||||
Year 2 | Year 1 | Year 2 | Year 1 | ||||
Net income | $2,187 | $3,775 | $1,905 | $3,202 | |||
Average number of common shares outstanding | 594 | 599 | 334 | 363 |
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.
Year 2 | Year 1 | |
Dakota | $fill in the blank per share | $fill in the blank per share |
Jersey | $fill in the blank per share | $fill in the blank per share |
b. Evaluate the relative profitability of the two companies.
____?_____ earnings per share for Year 1 and Year 2 are higher than ___?______ . However, from Year 1 to Year 2, the earnings per share for both companies ____?_____ . The slowing world economy contributed to the ____?______ from Year 1 to Year 2. Overall, ____?_____ appears to be the more profitable company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started