Academy Driving School reported the following amount in its financial statements:
Number of common shares 11,500.00 11,500.00
Net Income $ 23,000.00 $ 18,000.00
Cash Dividends paid on common stock $ 3,000.00 $ 3,000.00
Total Stockholders equity $240,000.00 $220,000.00
Calculate 2013 EPS and ROE. Another driving school in the same city reported a higher net income ($45,000) in 2013, yet its EPS and ROE ratios were lower than those for the Academy Driving School. Explain how this apparent inconsistency could occur.