Academy Driving School reported the following amounts in its financial statements:

	Year 1			Year 2
Number of common shares		13,000			13,000
Net income	$	45,500		$	40,500
Cash dividends paid on common stock	$	2,500		$	2,500
Total stockholders' equity	$	390,000		$	370,000

Calculate EPS and ROE for year 2

EPS = 3.12

ROE= ?

HINT: Its Not 11.59