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Can I please have some help answering these questions. thank you Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported
Can I please have some help answering these questions. thank you
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): Buy Now 2016 $ 127 1,129 1.65 Net income Total stockholders' equity Earnings per share Stock price when annual results reported Gerald's EZ Furniture 2016 2015 $ 134 $ 188 1,336 1,238 2.40 3.14 2015 $ 179 1,148 2.34 31.32 30.27 34.22 36.03 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? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 2B Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Rememb uses the average stockholders' equity. (Do not round your intermediate calculations, Ro ROE % Buy Now Gerald's EZ Furniture % Reg 18 reported the following in their financial statements (in millions of dollars, except per- share amounts and stock prices): Buy Now 2016 $ 127 1,129 1.65 Net income Total stockholders' equity Earnings per share Stock price when annual results reported Gerald's EZ Furniture 2016 2015 134 $ 188 1,336 1,238 2.40 3.14 2015 $ 179 1,148 2.34 31.32 30.27 34.22 36.03 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2016 P/E ratio for each company. (Round your answers to 1 decimal place. PIE Buy Now times Gerald's EZ Furniture times Step by Step Solution
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