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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 $2,142 $3,705 $1,940 $3,227 Average number of common shares outstanding 594 599 334 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 per share Jersey per share b. Evaluate the relative profitability of the two companies 363 per share per share earnings per share for Year 1 and Year 2 are higher than The slowing world economy contributed to the However, from Year 1 to Year 2, the earnings per share for both companies from Year 1 to Year 2. Overall, appears to be the more profitable company
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