The flowing numbers come from an equity statement for fiscal year 2011 (in millions):

Shareholders’ equity May 31, 2010 $2,700

Issue of shares for exercise of stock options 405

Repurchase of shares (132)

Net income 467

Unrealized loss on debt securities (23)

Tax benefit from the exercise of stock options 70

Common dividends paid (250)

Preferred dividends paid (10)

Shareholders’ equity May 31, 2011 3,227

The firm’s tax rate is 35 percent. Shareholders’ equity at May 31, 2010 includes $120 million in preferred stock.

a. Calculate the loss to common shareholders from the exercise of stock options.

b. Present a reformulated statement of common shareholders’ equity that identifies comprehensive income and separates it from net payout to shareholders.

c. What was the return on common equity (ROCE) for the year? (Use beginning equity in this calculation.)