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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 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
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