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OBJ.8 FAI EX 13-25 EPS Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining,

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OBJ.8 FAI EX 13-25 EPS Caterpillar Inc. and Deere & 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: Caterpillar Deere Year 2 Year 1 Year 2 Year 1 Net income $6,147 $754 $2,368 $2,159 Average number of common shares outstanding 591 592 323 320 a. Determine the earnings per share in Year 2 and Year 1 for each company. Neither Caterpillar nor Deere have any preferred stock outstanding. Round to the nearest cent. b. Evaluate the relative profitability of the two companies

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