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Two music companies reported the following in their financial statements: Urban Youth Sound Jonx 2015 2014 2015 2014 Net income $ 26,800 $ 23,602 $

Two music companies reported the following in their financial statements:

Urban Youth

Sound Jonx

2015 2014 2015 2014
Net income $ 26,800 $ 23,602 $ 44,000 $ 36,039
Total stockholders' equity 317,101 230,399 446,302 451,198
Earnings per share 1.10 1.00 0.95 0.85
Stock price when annual results reported 16.85 15.00 12.65 10.95

Required:
1-a.

Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.)

ROE %
Urban Youth
Sound Jonx

1-b.

Which company appears to generate greater returns on stockholders equity in 2015?

Urban Youth
Sound Jonx
Or Both Companies appear to generate the same return on equity

2-a.

Compute the 2015 P/E ratio for each company. (Round your answers to 1 decimal place.)

P/E Ratio
Urban Youth ___________________times
Sound Jonx ____________________times
2-b.

Which company investors appear to value more?

Sound Jonx
Urban Youth

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