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