Nisku Inc. (Nisku) and Grimsby Ltd. (Grimsby) are similar companies. You are considering investing in one of them and have received information about each for the year ended December 31, 2017.

Required:
Calculate EPS and ROE for both companies and decide which one you would invest in. Explain yourconclusion.

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Revenue Cost of sales Gross margin Other expenses Income before taxes Income tax expense Net income Nisku Inc income statement For the year ended December 31, 2017 $3,125,000 1,187,500 1,937,500 1406,250 531,250 Grimsby Ltod income statement For the year ended December 31, 2017 S3,125,000 1,187,500 1,937,500 1,406,250 531,250 79,687 79,687 S 451,563 S 451,563 Shareholders' equity Common shares Authorized: unlimited Outstanding: 1,000,000 Shareholders' equity Common shares: Authorized: unlimited Outstanding: 4,000,000 S 625,000 Share capital* Retained earnings Shareholders' equity During 2017, no new shares were issued during the year and each company paid dividends of $187,500 625,000 3,375,000 3,375,000 S4,000,000 $4,000,000