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Evaluate the relative profitability of the two companies

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Reference no: EM132191226

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

$2,132

$3,755

$1,915

$3,247

Average number of common shares outstanding

594

599

334

363

Required -

a. Determine the earnings per share in Year 2 and Year 1 for each company.

b. Evaluate the relative profitability of the two companies.

Reference no: EM132191226

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