Swimtech Pools Inc. (SPI) reported the following in its financial statements for the quarter ended March 31, 2013. December 31, 2012 March 31, 2013 Common Stock, $1 par, 50,000 shares outstanding ………………………… $ 50,000 ………………. $ 50,000 …… Additional Paid-In Capital ………………… 30,000 …………………. 30,000…….. Retained Earnings …………………………. 20,000 …………………. 20,000…….. Total Stockholders’ Equity ……………… $100,000 ………………..$100,000 …….. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31, 2013. 2. Assume SPI repurchases 10,000 of its common stock at a price of $2 per share on April 1, 2013. Also assume that during the quarter ended June 30, 2013, SPI reported Net Income of $5,000, and declared and paid cash dividends totaling $5,000. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2013. 3. Based on your calculations in requirements 1 and 2, what can you conclude about the impact of a stock repurchase on EPS and ROE? View Solution: Swimtech Pools Inc SPI reported the following in its financial