Evaluate the relative profitability of the two companies

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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.

Reference no: EM13534105

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