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Albatross Airlines, and Nightwing Flyers are two publicly traded airline companies. They reported the following in their financial statements (in millions of dollars, except per-share
Albatross Airlines, and Nightwing Flyers are two publicly traded airline companies. They reported the following in their financial statements (in millions of dollars, except per-share amounts and stock prices): Nightwing Albatross 2021 2020 Net income Total stockholders' equity Earnings per share Stock price when annual results reported $ 4,285 $ 3,637 14,287 5.78 55.37 2021 $ 2,825 14,510 4.61 58.14 10,213 4.40 60.28 2020 $ 3,548 10,790 5.90 57.27 Required: 1-a. Compute the 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) Albatross Airlines Nightwing Flyers ROE % % Req 1A Req 1B >
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