MediCare Hospital's year-end financials are as follows:

MediCare Hospital reported a fair market value of assets amounting to £2,000,000, total liabilities of £800,000, shareholder's equity of £900,000, and net income of £300,000.

Requirements:

1. Calculate the Return on Equity (ROE) for MediCare Hospital for the year ended 31 December 2021.
2. Discuss the importance of fair market value in assessing the financial health of MediCare Hospital.
3. Prepare the equity section of MediCare Hospital’s balance sheet as of 31 December 2021.