Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $670,000 long-term loan from Gulfport State Bank, $185,000 of which will be used to bolster the Cash account and $485,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Sabin Electronics Comparative Balance Sheet This Year Las Year Curret assers 13300o Accounis receivable, net Prepaid eopenses Total carranta 320000 14.000 470.000 85.000 39.000 1.115.000 4.000 1,580 000 Pant and aqaiment, nat Total assets Liablities and Stockholders Equity 138000n $3,995 800 2908.000 Bands peyable 12 750000 50000 Total iabilties 1,635.000 220.000 Stockholdam aquity Common stock, $20 par Retained eamings 880.000 908.000 60.000 1,500800 2.360600 $3,595 600 Total stockholders equity otal Sabades and aquity 2088.00D Sabin Electronics Comparative Income Statement and Reconciliation This Yoar Las Year 55850 0 486000D ,045.0003620000 Gost ef gods sol Gross margin Seling and aceinistrative expenses 1,805.000 1 240,000 687.000 Net operatna income 1.118.000 n0.000 568.000 Net income before tanes ncome taxes 0%) 1,028000 7 600 106,000 Common eividends 127.000 52600 291,600 Begining relsined eming Ending retained aming $1,500 600 S 908000 During the past year, the company introduced several nevw product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Assume that Paul Sabin has asked you to assess his company's profitability and stock market performance Required 1. You decide first to assess the company's stock market performance. For both this year and last year, compute . The earnings per share. There has been no change in common stock over the last two years. (Round your answers to 2 decimal places.) Earnings per share