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

2016 2015

Net income $448,750 $376,000

Preferred dividends $40,000 $40,000

Average number of common shares outstanding 75,000shares 60,000shares

a.Determine the earnings per share for 2016 and 2015. Round your answers to two decimal places.

2016 $ per share

2015 $ per share

b.Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?