Question: Financial statement data for the years ended December 31 for Dovetail Corporation follow: 20Y3 20Y2 Net income $332,250 $312,000 Preferred dividends $51,000 $51,000 Average number

Financial statement data for the years ended December 31 for Dovetail Corporation follow:

20Y3 20Y2
Net income $332,250 $312,000
Preferred dividends $51,000 $51,000
Average number of common shares outstanding 75,000 shares 60,000 shares

a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.

20Y3 $ per share
20Y2 $ per share

b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or an unfavorable trend?

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