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Dakota Inc. and Jersey & Company are two large companies that manufacture and se

ID: 2571285 • 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.

Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,197 $3,765 $1,905 $3,262 Average number of common shares outstanding 594 599 334 363 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 Year1 $3,765 594599 Year 2Year 1 $3,262 334363 Year 2 $2,197 $1,905 Net income Average number of common shares outstanding 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 shareper share

Explanation / Answer

Earnings per share in year 2 & year1 of two companies

Company

year 2

year 1

Dakota

$                                  3.70

$                                      6.29

jersey

$                                  5.70

$                                      8.99

               Dakota

                jersey

year 2

year 1

year2

year1

Net income (A)

$ 2,197.00

$ 3,765.00

$ 1,905.00

$ 3,262.00

Number of shares (B)

$     594.00

$     599.00

$     334.00

$     363.00

Earning per share (C=A/B)

$         3.70

$         6.29

$         5.70

$         8.99

Formula

Earning per share=(net income-preferred dividend)/average no of shares outstanding

Earnings per share in year 2 & year1 of two companies

Company

year 2

year 1

Dakota

$                                  3.70

$                                      6.29

jersey

$                                  5.70

$                                      8.99