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The parent company of SPI-K, ABCd Group Inc. reported the following information in its financial statements for the quarter ended June 30, 2021. March 31,

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The parent company of SPI-K, ABCd Group Inc. reported the following information in its financial statements for the quarter ended June 30, 2021. March 31, 2021 June 30, 2021 Common Shares 100,000 100,000 Contributed Surplus 15,000 15,000 Retained Earnings 45,000 45,000 Total Shareholder Equity 160,000 160,000 Net Income for June 30, 2021 was $5,000 and dividends declared and paid was $5,000. Required: A. Calculate EPS and ROE for June 30, 2021. (2 marks) B. Assume that ABCd Group Inc. repurchases 10,000 of its common shares at a price of $5 per share on July 1, 2021. The company had a net income of $5,000 and declared and paid a dividend of $5,000 for the quarter ending September 30, 2021. Calculate EPS and ROE for September 30, 2021. (6 marks) C. Now compare the calculations for EPS and ROE for June 30, 2021, and September 30, 2021, and determine what the impact was on the repurchase of shares.? (2 marks) The parent company of SPI-K, ABCd Group Inc. reported the following information in its financial statements for the quarter ended June 30, 2021. March 31, 2021 June 30, 2021 Common Shares 100,000 100,000 Contributed Surplus 15,000 15,000 Retained Earnings 45,000 45,000 Total Shareholder Equity 160,000 160,000 Net Income for June 30, 2021 was $5,000 and dividends declared and paid was $5,000. Required: A. Calculate EPS and ROE for June 30, 2021. (2 marks) B. Assume that ABCd Group Inc. repurchases 10,000 of its common shares at a price of $5 per share on July 1, 2021. The company had a net income of $5,000 and declared and paid a dividend of $5,000 for the quarter ending September 30, 2021. Calculate EPS and ROE for September 30, 2021. (6 marks) C. Now compare the calculations for EPS and ROE for June 30, 2021, and September 30, 2021, and determine what the impact was on the repurchase of shares.? (2 marks)

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