1. Earnings Per Share

   Financial statement data for the years ended December 31 for Dovetail Corporation follow:

   	20Y3		20Y2
   Net income	$823,500		$702,000
   Preferred dividends	$126,000		$126,000
   Average number of common shares outstanding	75,000	shares	60,000	shares

   a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.

   20Y3	$ per share
   20Y2	$ per share

   b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or an unfavorable trend?