Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 Outdoor Fun 2021 2020 $ 113,000 $ 109,204 617,186 542,814 3.80 3.79 55.90 52.54 Betterworth 2021 2020 $ 95,000 $ 172,773 477, 151 497,049 2.70 4.58 34.05 61.20 Required: 1-a. Compute the 2021 ROE for each company. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE Outdoor Fun % BetterWorth % 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 Outdoor Fun 2021 2020 $ 113,000 $ 109,204 617,186 542,814 3.80 3.79 55.90 52.54 Betterworth 2021 2020 $ 95,000 $ 172,773 477, 151 497,49 2.70 4.58 34.05 61.20 Required: 1-a. Compute the 2021 ROE for each company. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2021 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E Ratio Outdoor Fun times Better Worth times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

9th edition

1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

Analyze why humans have evolved submissive strategies.

Answered: 1 week ago