1. A company reported net income of $8.0975 million. At the beginning of the year, 3.85 million shares of common stock were outstanding and at the end of the year, 4.05 million shares were outstanding. No dividends were declared. The EPS is approximately:

$1.02

$2.10

$2.00

$2.05

2. A company has net income of $20.60 million. Stockholders' equity at the beginning of the year is $57.55 million and, at the end of the year, it is $88.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:

0.28

4.28

0.36

0.23