$4\mathrm{.}22$ Calculating and Interpreting the Return on Common Shareholders$$ Equity and Earnings per Common Share.

LO $4-1$

LO $4-3$

LO $4-4$

Selected data for General Mills for Year $1,$ Year $2,$ and Year $3$ appear below $($amounts in millions$).$

$$ Year $3$ Year $2$ Year $1$

Net income $$1,304\mathrm{.}4$ $$1,294\mathrm{.}7$ $$1,144\mathrm{.}0$

Weighted$-$average number of common shares outstanding $331\mathrm{.}9333\mathrm{.}0346\mathrm{.}5$

Average common shareholders$$ equity $$5,695\mathrm{.}3$ $$5,767\mathrm{.}4$ $$5,545\mathrm{.}5$

Required

Compute the rate of ROCE for Year $1,$ Year $2,$ and Year $3.$

Compute basic EPS for Year $1,$ Year $2,$ and Year $3.$

Interpret the changes in ROCE versus EPS over the three$-$year period.