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 financial data for Pacific Gas and Electric are as follows (in millions): Year 3 Year 2 Year 1 $830 14 14 Net income $1,450 $828 Preferred dividends 14 Average number of common shares outstanding 468 444 a. Determine the earnings per share for Years 1-3. Round your answers to two decimal places. Year 3 Year 2 Year 1 424 EPS b. Interpret the trend in earnings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding