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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4.22  CALCULATING AND INTERPRETING THE RATE OF RETURN ON COMMON SHAREHOLDERS’ EQUITY AND EARNINGS PER COM- MON SHARE. Selected data for General Mills for 2007, 2008, and 2009 appear below (amounts in millions).
Â
|
 |
2009 |
2008 |
2007 |
|
Net Income Weighted Average Number of Common Shares Outstanding |
$1,304.4 Â 331.9 |
$1,294.7 Â 333.0 |
$1,144.0 Â 346.5 |
|
Average Common Shareholders’ Equity |
$5,695.3 |
$5,767.4 |
$5,545.5 |
Â
a.   Compute the rate of ROCE for 2007, 2008, and 2009.
b.  Compute basic EPS for 2007, 2008, and 2009.
c.   Interpret the changes in ROCE versus EPS over the three-year period.
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