M11-13 Calculating and Interpreting Earnings per Share (EPS) and Return on Equity (ROE) [LO 11-5]

Calculate EPS and ROE with the given information:

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