Question - Financial statement data for the years ended December 31 for Dovetail Corporation follows:
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2016
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2015
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Net income
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$448,750
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$376,000
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Preferred dividends
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$40,000
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$40,000
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Average number of common shares outstanding
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75,000 shares
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60,000 shares
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a. Determine the earnings per share for 2016 and 2015. Round your answers to two decimal places.
b. Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?