Two magazine companies reported the following in their 2012 financial statements: BusinessWorld Fun and Games 2012 2011 2012 2011 Net income $ 109,000 $ 108,404 $ 90,420 $ 171,973 Total stockholders' equity 577,186 502,814 437,151 457,049 Earnings per share 3.00 2.99 1.90 3.78 Stock price when annual results reported 53.90 50.54 32.05 59.20 Required: 1-a. Compute the 2012 ROE for each company. (Round your answers to 1 decimal place.) 1-b. Which company appears to generate greater returns on stockholders equity in 2012? BusinessWorld Fun and Games Both Companies appear to generate the same return on equity 2-a. Compute the 2012 P/E ratio for each company. (Round your answers to 1 decimal place.) 2-b. Which company do investors appear to value more? BusinessWorld Fun and Games