EPS
OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of $667,000 for a recent year, while Staples had a net income of $738,671,000. OfficeMax had preferred stock of $36,479,000 with preferred dividends of $2,818,000. Staples had no preferred stock. The outstanding common shares for each company were as follows:
|
Average Number of
|
|
Common Shares Outstanding
|
|
OfficeMax
|
77,483,000
|
|
Staples
|
721,838,000
|
a. Determine the earnings per share for each company. Round to the nearest cent.
b. Evaluate the relative profitability of the two companies.