Dakota Inc. and Jersey & Company are two large companies that manufacture and se
ID: 2516487 • 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:
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.
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.
Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,152 $3,765 $1,910 $3,167 Average number of common shares outstanding 594 599 334 363 ogress false eBook Calculator Dakota Inc. and Jersey & Company are two large companies that manufacture and sell industries. The companies reported the following data (in milions) for two recent years used in the mining, and forestry Dakota ersey Net income Average number of common shares outstanding 594 a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. $2,152 $3,765 $1,910 $3,167 599 334 363 Year 2 Year 1 Dakota 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 from Year 1 to Year 2. Overall, for both companies The slowing world economy contributed to the ESP 1:35 a.mI a 40 UA 1004 2018 ^Explanation / Answer
Solution a:
Solution b:
Earning per share for Jersey company for year 1 and year 2 are higher than Earning per share of Dakota company for year 1 and 2. However from Year 1 to Year 2, the earning per share for both companies are decreasing. The slowing world economy contributed to the decreasing earning per share from year 1 to year 2. Overall Jersey company, appears to be the more profitable company.
Computation of Earning per Share Particulars Dakota (In Million) Jersey (In Million) Year 2 Year 1 Year 2 Year 1 Net Income $2,152.00 $3,765.00 $1,910.00 $3,167.00 Average number of common shares outstanding 594 599 334 363 Earning per share (Net Income / Average outstanding common shares) $3.62 $6.29 $5.72 $8.72Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.