CP11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios (LO 11-5) 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 $ 115 1,10g Net income Total stockholders' equity Earnings per share Stock price when annual results reported 2015 $ 167 1,168 2.22 Gerald's EZ Furniture 2016 2015 $ 122 $ 176 1,340 1.296 2.28 3.02 1.53 25.32 29.07 28.22 34.83 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 Reg 2A Reg 28 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. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) ROE Buy Now Gerald's EZ Furniture Reg 10 > CP11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios (LO 11-5] 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 2015 Gerald's EZ Furniture 2016 122 $ 176 1. 340 1.296 $ $ S 2016 115 1,199 1.53 Net income Total stockholders' equity Earnings per share Stock price when annual results reported 2015 167 1,168 2.22 25.32 29.07 28.22 34.83 Required: 1-0. 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? 2-0. 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. Reg 1 Reg 18 Reg 2A Reg 28 which company appears to generate greater retums on stockholders' equity in 20167 Buy Now Gerald's EZ Furniture Req1A Req 2A > CP11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios [LO 11-5) 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 $ Net Income Total stockholders' equity Earnings per share Stock price when annual results reported 2016 $ 115 1. 109 1.53 2015 167 1,168 2.22 Gerald's EZ Furniture 2016 2015 $ 122 5 176 1,340 1,296 2.28 3.02 25.32 29.07 28.22 34.83 Required: rences 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. Reg 1A Reg 18 Reg 2A Reg 28 Compute the 2016 P/E ratio for each company. (Round your answers to 1 decimal place.) Buy Now Gerald's EZ Furniture CP11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios [LO 11-5) 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 2016 2015 122 $ 176 1,340 1,296 2.28 3.02 $ Buy Now 2016 2015 115 $ 167 1.109 1.168 1.53 2.22 Net income Total stockholders' equity Earnings per share Stock price when annual results reported $ 25.32 29.07 28.22 34.83 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 inwestors appear to value more? Complete this question by entering your answers in the tabs below. Req1A Req 18 Reg 2 Reg 20 which company do investors appear to value more? Buy Now OG EZ Furniture ( Reg 2
