Dicker company has the following pattern of financial data

Question

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.