Tanisha Greggs, a stockholder in Mentar Corp., has just received a report of the company’s ten-year financial performance that includes the following graph. In the report, management states that “the company has increased earnings per share for ten consecutive years.’ Tanisha is confused about the information presented in the graph. Help her understand the company’s financial performance by answering the following questions.

Instructions:
1. Has earnings per share increased each year?
2. Estimate the earnings per share for year 10.
3. Describe the trend in the rate earned on average stockholders’ equity.
4. Describe the trend in the rate earned on net sales.

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Percentage 3% 2% Financial Performance Analysis for Mentar Corp. $2.00 $1.50 $1.00 1% $0.50 0% $0.00 1 2 3 4 5 6 7 8 9 10 Year Rate Earned on Net Sales Rate Earned on Average Stockholders' Equity Earnings Per Share