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letter b: interpret the trend

Use the Dynamic Exhibit to answer the following questions, 1. When treasury stock is purchased for $42 per share and subsequently sold for $47 per share, treasury stock is credited for from the sale of Treasury Stock is credited for per share when the sale is recorded. 42 per share and Paldin Capital 2. When treasury stock is purchased for $42 per share and subsequently sold for $40 per share, treasury stock is credited for from the sale of Treasury Stock is for per share when the sale is recorded. per share and Pald in Capital 3. When treasury stock is purchased for $38 per share and subsequently sold for $47 per share, treasury stock is credited for from the sale of Treasury Stock is for $ per share when the sale is recorded. per share and Paldin Capital 4. When treasury stock is purchased for $38 per share and subsequently sold for $40 per share, treasury stock is credited for from the sale of Treasury Stock is for $ per share when the sale is recorded. p er share and Paid-in Capital Pacific Gas and Electric: Earnings per share Pacific Gas and Electric Company is a large gas and electric Utility operating in northern and central California. Three recent years of financal data for Pacheco are as follows (in millions): Year 3 Year 2 Year 1 Net Income $1,450 $828 $830 Preferred dividends 14 Average number of common shares outstanding. 468 424 a. Determine the earnings per share for Years 1-3. Round your answers to two decimal places. Year 3 Year 2 Year 1 EPS $ 3.07 $ 1.83 1.93 b. Interpret the trend in earings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding 14 444 Earnings per share has increased both between Year 1 and Year 2, and also between Year 2 and Year 3. Earnings per share has decreased both between Year 1 and Year 2, and also between Year 2 and Year 3. There is a slight decline in earnings per share between Year 1 and Year 2 and then an increase in Year 3. There is a sharp increase in the earnings per share between Year 1 and Year 2 and then a slight decline in Year 3