You Are Given the Following Data for Good Company Inc

question 63

Essay

You are given the following data for Good Company Inc. for 2004, 2005, and 2006 (amounts in thousands).
$\begin{array}{lrrr}&2006&2005&2004\\\text { Net income } & \$ 445 & \$ 402 & \$ 345 \\\text { Average number of common shares outstanding } & 135 & 134 & 132 \\\text { Average common shareholder' equity } & \$ 1,231 & \$ 964 & \$ 735\end{array}$
a. Calculate ROCE for the three years.
b. Calculate basic EPS for the three years.
c. Interpret your findings for both ROCE and EPS.

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Definitions:

Sherman Act

The Sherman Act is a landmark federal statute in the field of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic business practices and promotes competition.

Illegal Per Se

Refers to actions or conditions that are inherently illegal, without the need for additional proof of their harmfulness or illegality.

Market Allocations

Agreements between competitors to divide markets among themselves, often considered illegal under antitrust laws.

Sherman Act

The Sherman Act is landmark federal legislation passed in 1890 aimed at promoting fair competition for the benefit of consumers by prohibiting monopolies and restrictive trade practices.