The following table demonstrates the projected figures of the Companies "A", "B" and "C" for 2021.

Table (1): Projected Figures for 2021

Company

Outstanding Loan*

Interest Expense*

Net Profit*

Shareholder's Equity*

Number of Shares**

A

16,065

1,723

830

5,892

39

B

5,045

605

2,320

24,799

386

C

2,314

352

2,475

12,563

52

*All the figures are in CAD millions.

**Number of Shares are in millions.

The following graph shows the movement in lending rates in Jan-Dec of 2021

Jan 2021

Feb 2021

March 2021

April 2021

May 2021

June 2021

July 2021

August 2021

Sep 2021

Oct 2021

Nov 2021

Dec 2021

10.24%

10.15%

10.03%

9.94%

9.93%

9.85%

9.77%

9.7%

9.62%

9.66%

9.56%

9.51%

The companies pay their installments semi-annually; one in June and another one in December. As the interest rates fell sharply, all the three companies renegotiated the interest rates on their outstanding loans in May 2021. Corporate Tax rate for all the three companies is 25%.

a) Calculate the Earning per Share (EPS) and Return on Equity (ROE) of all the three companies for 2021

b) Calculate the revised Earning per Share (EPS) and Return on Equity (ROE) of all the three companies after renegotiation

c) Explain how you reached the numbers in the answer sheet. You can incorporate any additional assumption behind your calculation.