On July 1, 2020, Jones Limited had the following share structure: Required: Complete the following table based on three independent cases involving share transactions: (Round your par value answers to 2 decimal places.) Case 1: The board of directors declared and issued a 12 percent stock dividend when the share price was $7.00 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the share price was $7.00 per share. Case 3: The board of directors voted a 2 -for-1 stock split. The share price prior to the split was $7.00 per share. Two magazine companies reported the following in their 2020 financial statements (in thousands of dollars, except earnings per share amounts and share prices): Required: 1-a. Compute the 2020 ROE for each company (express ROE as a percentage). 1-b. Which company appears to generate greater returns on shareholders' equity in 2020 ? Business Now Fun and Games Both Companies 2-a. Compute the 2020 P/E ratio for each company. (Round your answers to 1 decimal place.) 2-a. Compute the 2020 P/E ratio for each company. (Round your answers to 1 decimal place.) 2-b. Which company do the investor appear to value more? Business Now Fun and Games 3-a. Fun and Games reacquired 32,804 (thousand) common shares in 2020 at $4 per share. Recalculate the company's ROE for 2020 , assuming that this share repurchase did not occur. (Round your answer to 1 decimal place.) 3-b. Does this new ROE change your interpretation of the ROE ratios calculated in requirement 1? Yes No On July 1, 2020, Jones Limited had the following share structure: Required: Complete the following table based on three independent cases involving share transactions: (Round your par value answers to 2 decimal places.) Case 1: The board of directors declared and issued a 12 percent stock dividend when the share price was $7.00 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the share price was $7.00 per share. Case 3: The board of directors voted a 2 -for-1 stock split. The share price prior to the split was $7.00 per share. Two magazine companies reported the following in their 2020 financial statements (in thousands of dollars, except earnings per share amounts and share prices): Required: 1-a. Compute the 2020 ROE for each company (express ROE as a percentage). 1-b. Which company appears to generate greater returns on shareholders' equity in 2020 ? Business Now Fun and Games Both Companies 2-a. Compute the 2020 P/E ratio for each company. (Round your answers to 1 decimal place.) 2-a. Compute the 2020 P/E ratio for each company. (Round your answers to 1 decimal place.) 2-b. Which company do the investor appear to value more? Business Now Fun and Games 3-a. Fun and Games reacquired 32,804 (thousand) common shares in 2020 at $4 per share. Recalculate the company's ROE for 2020 , assuming that this share repurchase did not occur. (Round your answer to 1 decimal place.) 3-b. Does this new ROE change your interpretation of the ROE ratios calculated in requirement 1? Yes No