Calculate return on equity and earnings per share. (LO 6)

The following financial information is available for Cable Corporation at the end of its two most recent fiscal years. The company has no preferred stock. Calculate (1) return on equity and (2) earnings per share. What do the ratios indicate about the company's performance during the year?

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(amounts in thousands) 2006 2005 Weighted average common shareholders' equity Dividends declared for common shareholders $1,328 $1,150 500 485 Net income 2,015 1,422 Average number of common shares outstanding during the year 2,186 1,950