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Marco's Rentals and John's Rentals are two publicly traded rental companies. They reported the following in their financial statements in millions of dollars, except per-
Marco's Rentals and John's Rentals 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 Marco's Rentals John's Rentals 2013 2012 2013 2012 Net Income $ 23 $ 175 $ 130 $ 194 Total stockholders' equity 1.137 1.254 Earnings per share 761 2.30 2.36 3.10 Stock price when annual results reported 29.32 29.87 3222 35.63 Required: 1-2. Compute the 2013 ROE for each company. Express ROE sa percentage. Do not round your intermediate calculations. Round your answers to 1 decimal place.) TIP: Remember that the bottom of the ROE rstio uses the average stockholders equity ROE Marco's Rentals John's Rantals 1-b. Which company appears to generate grester returns on stockholders' equity in 2013: O Marco's Rentals John's Rentals 2-a. Compute the 2013 Prato for each company. (Round your answers to 1 decimal place.) PIE times Marco's Rentals John's Pants times 2-b. Which company do investors appear to value more? John's Rentals O Marco's Rentals
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