Return on Equity In Presence of Large Treasury Stock Balance NJ Simpson Inc. reported the following equity accounts in its 2019 balance sheet. Stock prices for the past three year-ends of 2019, 2018, and 2017 are: $244.80, $196.96, and $136.34, respectively. Shareholders' Equity ($ millions, expect par and shares) 2019 2018 2017 Common stock - par value $1 per share (authorized 70,000,000 shares; issued 40,000,000 shares) $40 $40 $40 Additional paid-in capital 1,240 1,240 1,240 Accumulated other comprehensive income 108 (96) (220) Retained earnings 1,419 1,340 1,209 Stockholders' equity before treasury stock 2,807 2,524 2,269 Less: common stock held in treasury, at cost (15,360,000, 10,336,000, and 980,000 shares, respectively) (2,776) (1,844) (114) Total shareholders' equity 31 680 2, 155 Equity attributable to noncontrolling interest (6) (6) (6) Equity attributable to company shareholders $25 $674 $2, 149 The income statement for NJ Simpson Inc. reports the following. $ millions 2019 2018 2017 Earnings attributable to company shareholders $405 $301 $217 Consolidated net income 409 303 218 a. Compute return on equity for 2019 and 2018, under the following assumptions. . Traditional definition of equity. . With adding back treasury stock to equity. . Using market value of equity instead of book value. Round answers to one decimal place (ex: 0.2345 = 23.5%) ROE computation 2019 2018 Traditiona 0% X 0% X No treasury stock 0% X 0% X Market value of equity 0% X 0% X