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Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except

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Buy Now and Gerald's EZ Furniture 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) Gerald's EZ Furniture Buy Now 2015 124 176 1,142 2.31 2016 2015 $ 131 185 1,257 3.11 2016 Net income Total stockholders' equity Earnings per share Stock price when annual results reported 1,135 1.62 1,345 2.37 29.82 29.97 32.72 35.73 Required: 1-a. Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that the bottom of the ROE ratio uses the average stockholders' equity 1-b. Which company appears to generate greater returns on stockholders' equity in 2016? 2-a. Compute the 2016 P/E ratio for each company 2-b. Which company do investors appear to value more

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