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Luna Incorporated, and Here to There Industries are two publicly traded airline companies. They reported the following in their financial statements (in millions of
Luna Incorporated, and Here to There Industries 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 Required: Luna Here 2021 $ 4,105 13,987 5.73 53.17 2020 $ 3,607 14,210 4.57 55.83 2021 $ 2,645 2020 $3,518 10,033 4.35 10,610 5.05 59.07 56.12 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? 2-6. 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 18 Req 2A Req 28 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. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) Luna Incorporated Here to There Industries ROL CHA Req 18 >
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