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I do not believe my answers are correct for Return on Common Shareholders' Equity, Earnings per Share and Price-Earnings Ratio.

Please help, am i using the incorrect formula or data?

Balance Sheet August 31, 2020, 2019, 2018, 2017, 2016 8/31/20 8/31/19 8/31/18 1/31/17 8/31/16 ASSETS 688,797.61 663.49 334,50

Return on Common Shareholders' Equity -3% 8 31.96% 31.84% 35.50%
Net Income (Loss) 222,543.00
Common Dividends 250,000.00
Common Stock, $1 Par, 100,000 Authorized; 50,000 shares Issued/Outstanding (same 2020 & 2019) 50,000.00
Ending Retained Earnings 2020 547,125.75
Ending Retained Earnings 2019 624,582.75
Average Common Stockholders' Equity 934,417.13
Earnings per Share (EPS) -$0.55 9 $4.72 $5.19 $3.05
Net Income (Loss) 222,543.00
Common Dividends 250,000.00
Common stock 50,000 shares Issued/Outstanding 50,000.00
Price-Earnings (P/E ) Ratio (81.95) 10 11.66 13.87 9.95
Market Price per Share 45
Earnings per Share (EPS) -$0.55
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Answer #1

Return on Equity (ROE) = Net Income / Shareholders' equity
Net Income (given) = 222,543
Book Value of Shareholders' equity (given) = 644,701
Therefore, ROE = 222543 / 644701 = 0.3451 or 34.51%

Earnings per share (EPS) = (Net Income / Weighted average shares outstanding)
Net Income (given) = 222,543
Weighted average shares outstanding (given) = 50,000
Therefore, EPS = 222543 / 50000 = 4.45

Price-Earnings Ratio (P/E Ratio) = (Market Price per share / Earnings per share)
Market Price per share(MPS) (given) = 45
Earnings per share(EPS) (as computed above) = 4.45
Therefore, P/E ratio = 45 / 4.45 = 10.11

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