2-a.	Compute the 2013 P/E ratio for each company. (Round your answers to 1 decimal place.)

	P/E
Marco's Rentals		times
John's Rentals		times

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Marco's Rentals and John's Rentals. are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except per = share amounts and stock prices):

	Marco's Rentals							John's Rentals
	2013			2012				2013			2012
Net income	$	120		$	172			$	127		$	181
Total stockholders' equity		1,119			1,158				1,321			1,281
Earnings per share		1.58			2.27				2.33			3.07
Stock price when annual results reported		27.82			29.57				30.72			35.33

Required:

1-a.

Compute the 2013 ROE for each company. Express ROE as a percentage. (Do not round your intermediate calculations. Round your answers to 1 decimal place.)

TIP: Remember that the bottom of the ROE ratio uses the average stockholders equity.

	ROE
Marco's Rentals		%
John's Rentals		%

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