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Financial statement data for the years ended December 31 for Dovetail Corporation follow: 20Y3 20Y2 Net income $925,000 $755,250 Preferred dividends $141,000 $141,000 Average number
Financial statement data for the years ended December 31 for Dovetail Corporation follow:
20Y3 20Y2
Net income $925,000 $755,250
Preferred dividends $141,000 $141,000
Average number of common shares outstanding 80,000shares 65,000shares
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?
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