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Aarons, Inc. and Rent-A-Center, Inc. are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except per

Aarons, Inc. and Rent-A-Center, Inc. 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):

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Last Question is: Which company do investors appear to have more value in?

Aaron's, Inc. and Rent-A-Center, Inc. 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) Aaron's, Inc. Rent-A-Center, Inc 2013 2012 2013 2012 Net income 121 173 128 182 Total stockholders' equity 1,141 1,136 1,343 1,464 Earnings per share 1.59 2.28 2.34 3.08 Stock price when annual results reported 28.32 29.67 31.22 35.43 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 Aaron's Rent-A-Center 1-b. Which company appears to generate greater returns on stockholders' equity in 2013? Aaron's O Rent-A-Center 2-a. Compute the 2013 P/E ratio for each company. (Round your answers to 1 decimal place.) PIE Aaron's times Rent-A-Center times

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