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

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Accounting

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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 $2,112 594 $3,765 599 $1,905 3 34 $3,247 363 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 share per share b. Evaluate the relative profitability of the two companies. Jersey's earnings per share for Year 1 and Year 2 are higher than Dakota's However, from Year 1 to Year 2, the earnings per share for both companies . The slowing world economy contributed to the declines from Year 1 to Year 2. Overall, Jersey appears to be the more profitable company. declined

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