on in owners' equity at the start of 2017. A million shares were outstanding value; market then, with a price at 20% premium to book value. What were its market value and book value-per-share and book value-per-share? 2. XYZ earned $10 million in (after-tax) profits during 2017. What was its ROE and earnings-per-share (eps)? 3. XYZ retained $5 million of its 2017 earnings. Suppose the company makes the same profits in 2018. What are the new ROE and eps? Can you explain the different behaviors of these two measures relative to 2017? 4. Food for thought (not required for homework): With ROE having deteriorated in 2018, how does this affect owners/investors, particularly in light of the lack of deterioration in eps? Hint: "Total Rate of Return" on Investment (a broader concept than ROI introduced in the lecture). 5. Return to the start of 2018, given the 2017 retained earnings as in question 3. What were XYZ's market value and book value; market value-per-share and book value-per-share on Jan 2 2018, assuming the same relationship (i.e., 20% premium) between market and book value-per-share as in question 1? 6, on Jan 3 2018 XYZ issues an additional 100,000 shares at a 2% discount to its Jan 2 price. what are its market and book values; market value-per-share and book value-per-share on that date