Stephen Hawkins, Inc., currently has a common stock $65,000 and retained earnings of $175,000. The firm is expecting the following net income and dividends for the next five years.

Year	1	2	3	4	5
Net Income	$70,000	$85,000	$110,000	($30,000)	$30,000
Dividends distribution (% of Net income)	40%	35%	50%	0	20%

Required:

Determine the Return on Equity for each year and average return on equity for the 5-year period.