On January 1, 2020, Vahsholtz Automotive purchased 5,000 treasury shares. Other information regarding Vahsholtz Automotive is provided as follows.

Compute 

(a) Return on ordinary shareholders’ equity for each year and 

(b) Earnings per share for each year, and 

(c) Discuss the changes in each.

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2019 2020 Net income Dividends on preference shares Dividends on ordinary shares Weighted-average number of ordinary shares outstanding Ordinary shareholders’ equity beginning of year Ordinary shareholders’ equity end of year €100,000 €110,000 €30,000 €30,000 €20,000 €25,000 45,000 50,000 €600,000 €750,000 €750,000 €830,000