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ak eres gnment takeAssignmentMar doinvokeassignments& takeAssignmentSessionLocator-assignment taked npro ess-tis eBook Print Item 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 $2,102 $3,755 $1,930 $3,187 Average number of common shares outstanding 594 599 334 363 Net income 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 per share per share Dakota Jersey b. Evaluate the relative profitability of the two companies. per share per share . However, from Year 1 to Year 2, the earnings per share 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 appears to be the more profitable company

Explanation / Answer

a) Calculation of EPS of two companies for year 1 (Amount in $)

Calculation of EPS of two companies for year 2 (Amount in $)

b) Jersey's Earning per share for year 1 and year 2 are higher than Dakota. However, from year 1 to year 2, the earnings per share for both companies has declined. The slowing world economy contibuted to the decrease in EPS from year 1 to year 2. Overall, Jersey appears to be the more profitable company.  

Particulars Dakota Jersey 1) Net Income 3,755 3,187 2) Average no. of common shares outstanding 599 363 3) Earning Per Share (1/2) 6.27 8.78

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