You Are Given the Following Data for Good Company Inc

question 37

Essay

You are given the following data for Good Company Inc. for 2004, 2005, and 2006 (amounts
in thousands). $$\begin{array} { | l | c | c | c | } \hline & 2006 & 2005 & 2004 \\\hline \text { Net Income } & \$ 445 & \$ 402 & \$ 345 \\\hline \begin{array} { l } \text { Average number of common } \\\text { shares outstanding }\end{array} & 135 & 134 & 132 \\\hline \begin{array} { l } \text { Average common shareholder } \\\text { equity }\end{array} & \$ 1,231 & \$ 964 & \$ 735 \\\hline\end{array}$$
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:

Child Abuse

Any act or failure to act by a parent or caregiver that results in actual or potential harm to a child, including physical, emotional, sexual abuse, or neglect.

Definition

A statement that explains the meaning of a term or a concept.

Cultures

Collective patterns of behaviors, beliefs, values, customs, and artifacts that are passed through generations within societies.

Economically

Pertaining to the economy, financial considerations, or the efficient use of resources.