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Two online magazine companies reported the following in their financial statements: Net income Total stockholders' equity Earnings per share Stock price when annual results reported
Two online magazine companies reported the following in their financial statements: Net income Total stockholders' equity Earnings per share Stock price when annual results reported BusinessWorld 2015 2014 $106,500 $107,904 552,186 477,814 2.30 2.49 Fun and Games 2015 2014 $87,500 $ 171,473 412,151 432,049 1.40 3.28 52.65 49.29 30.80 57.95 Required: 1-a. Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.) ROE BusinessWorld Fun and Games h Which company appears to generate greater returns on stockholders' equity in 1-5. 2015? BusinessWorld Fun and Games Both Companies appear to generate the same return on equity 2. Compute the 2015 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E Ratio times BusinessWorld Fun and Games times
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