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Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported the (in millions of dollars, except per share amounts and stock

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Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported the (in millions of dollars, except per share amounts and stock prices); Gerald's EZ Buy Now Furniture 2016 2015 2016 2015 Net income $ 117 $ 169 $ 124 $ 178 Total stockholders' equity 1,113 1,164 1,326 1,298 Earnings per share 1.55 2.24 2.30 3.84 Stock price when annual results reported 26.32 29.27 29.22 35.03 Required: 1-a. Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that 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? s Complete this question by entering your answers in the tabs below. Req IA Reg 18 Req 2A Reg 28 Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that the uses the average stockholders' equity. (Do not round your intermediate calculations. Round your ar place.) ROE Buy Now % Gerald's EZ Furniture Req 18 > Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported the fo (in millions of dollars, except per-share amounts and stock prices); Net income Total stockholders' equity Earnings per share Stock price when annual results reported Buy Now 2016 2015 $ 117 $ 169 1,113 1,164 1.55 2.24 Gerald's EZ Furniture 2016 2015 $ 124 $ 178 1,326 1,298 2.30 3.04 26.32 29.27 29.22 35.03 Required: 1-a. Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 2A Req 28 Compute the 2016 P/E ratio for each company. (Round your answers to 1 decimal place.) PIE times Buy Now Gerald's EZ Furniture times Prev 1 of 1 Next

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