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Eagle Flights, and Albatross Airlines are two publicly traded airline companies. They reported the following in their financial statements (in millions of dollars, except
Eagle Flights, and Albatross Airlines 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): Net income Total stockholders' equity Earnings per share Stock price when annual results reported Eagle Albatross 2021 2020 2021 2020 $ 4,495 $ 3,672 14,637 $ 3,035 $ 3,583 5.83 57.89 14,860 4.65 10,423 4.47 11,000 5.96 60.79 61.86 58.77 Required: 1-a. Compute the 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 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 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the b the average stockholders' equity. (Do not round your intermediate calculations. Round your ans Eagle Flights Albatross Airlines ROE % % < Req 1A Req 1B >
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