Return on Equity in Presence of Large Treasury Stock Balance The income statement for N J Simpson Inc. reports the following. 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% ) b. Which of these metrics do we believe best measures the company's return for the past two years? Select which statement is correct. OTraditional ROE is inflated by the small equity balance in the denominator. This version does not truly measure the company's performance. All of these statements are correct. Return on Equity in Presence of Large Treasury Stock Balance The income statement for N J Simpson Inc. reports the following. 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% ) b. Which of these metrics do we believe best measures the company's return for the past two years? Select which statement is correct. OTraditional ROE is inflated by the small equity balance in the denominator. This version does not truly measure the company's performance. All of these statements are correct