Calculate return on equity and earnings per share.
The following financial information is available for Cable Corporation at the end of its two most recent fiscal years. The company has no preferred stock. Calculate (1) return on eq uity and (2) earnings per share. What do the ratios indicate about the company's perfor mance during the year?
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(amounts in thousands)
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2006
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2005
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Weighted average common shareholders' equity
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$1,328
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$1, 150
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Dividends declared for common shareholders
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500
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485
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Net income
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2,015
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1,422
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Average number of common shares outstanding during the year
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2,186
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1,950
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