Ratio Analysis Consider the following information taken from the shareholders' equity section:   (dollar amounts in thousands)   2018 2017 Preferred shares $ 1,000   $ 1,000   Common shares, 258,052,356 and 274,001,656 shares issued and outstanding in 2018 and 2017, respectively 3,343   3,310   Contributed surplus—common shares 766,382   596,239   Retained earnings 2,192,674   2,424,403   Accumulated other comprehensive (loss) income (206,662)   58,653   Total shareholders’ equity $2,756,737   $3,083,605     Additional Information (all numbers in thousands other than per share information): 2018 Weighted average common shares outstanding 260,000   Price per share at year-end $105.45   Net income $1,358,950   Preferred dividends $100,000   Common dividends $213,440   Common dividends per share $.82   Share repurchases $834,975     Required: 1.  Calculate the following for 2018 (Note: Round answers to two decimal places): Shareholder Profitability: Return on common equity% EPS$ per share

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A:

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.