Dakota Inc. and Jersey & Company are two large companies that manufacture and se
ID: 2436195 • Letter: D
Question
Dakota Inc. and Jersey & 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: Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,162 $3,765 $1,925 $3,162 Average number of common shares outstanding 594 599 334 363 a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. Year 2 Year 1 Dakota $ per share $ per share Jersey $ per share $ per share b. Evaluate the relative profitability of the two companies. earnings per share for Year 1 and Year 2 are higher than . However, from Year 1 to Year 2, the earnings per share for both companies . The slowing world economy contributed to the from Year 1 to Year 2. Overall, appears to be the more profitable company.
Explanation / Answer
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. Year 2 Year 1 Dakota $ per share $ per share Jersey $ per share $ per share
Both companies is not profitable companies because earning per share of year 2 is lower than earning per share of year 1
Dakota Jersey Year 2 Year 1 Year 2 Year 1 Earning per sahre 2162/594 = 3.64 3765/599 = 6.29 1925/334 = 5.76 3162/363 = 8.70Related Questions
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