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Delta Air Lines, Inc., and Southwest Airlines Co. are two publicly traded airline companies. They reported the following in their financial statements (in millions of

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Delta Air Lines, Inc., and Southwest Airlines Co. 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): 2015 S 4373 S 4,526 12,287 10,850 568 2015 S 2,244 S2,181 7,358 3.30 2016 2016 Netincome Total stockholders' equity Earnings per share Stock price results reported 8,441 3.58 5.82 when annual 49.51 4610 53.23 35.69 Requlrec 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 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 Delta Air Lines, Inc. Southwest Airlines Co. Req 1A Req 1B > Req 1A Which company appears to generate greater returns on stockholders' equity in 2016? ODelta Air Lines, Inc. Req 1B Req 2A Req 28 Southwest Airlines Co. Req 1A Req 2A > Req 1A Req 1B Req 2A Req 2B Compute the 2016 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E Delta Air Lines, Inc times Southwest Airlines Co. times Req 1B Req 2B > Req 1A Which company do investors appear to value more? ODelta Air Lines, Inc. Req 1B Req 2A Req 2B Osouthwest Airlines Co K Req 2A Req 2B

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