The Dicker Company has the following pattern of financial data for Years 1 and 2:
|
Year 1
|
Year 2
|
|
Net income
|
$ 40,000
|
$ 42,000
|
|
Preferred stock (5%)
|
$450,000
|
$550,000
|
|
Weighted average number of
|
|
|
|
common shares outstanding
|
38,000
|
38,000
|
Required Calculate earnings per share and comment on the trend.