E11-17 Determining the Effect of a Stock Repurchase on EPS and ROE LO 11-2, 11-5 Swimtech Pools Inc. (SPI) reported the following in its financial statements for the quarter ended March 31, 2021. Common Stock, $1 par, 50,000 shares issued and outstanding Additional Paid-In Capital Retained Earnings December 31, 2020 $ 50,000 30,000 20,000 $100,000 March 31, 2021 $ 50,000 30,000 20,000 $100,000 Total Stockholders' Equity During the quarter ended March 31, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling $5,000. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. 2. Assume SPI repurchases 10,000 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the quarter ended June 30, 2021, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling $5,000. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. 3. Based on your calculations in requirements 1 and 2, what can you conclude about the impact of a stock repurchase on EPS and ROE?

LO 11-2, 115 Swimtech Pools Inc. (SPI) reported the following in its financial statements for the quarter ended March 31, 2021. During the quarter ended March 3L, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling $5,000. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. 2. Asrume SPI repurchases 10,000 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the quarter ended June 30, 2021, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling \$5,000. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. 3. Based on your calculations in requirements 1 apd 2, what can you conclude about the impact of a stock repurchase on EPS and ROE