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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 2021 2020 $ 110,000 $ 108,604 587, 186 512,814 3.20 3.19 Fun and Games 2021 2020 $ 91,420 $ 172, 173 447, 151 467,049 2.10 3.98 54.40 51.04 32.55 59.70 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 Reg 1B Req 2A Req 2B Compute the 2021 ROE for each company. ROE BusinessWorld % Fun and Games % Req 1A Req 1B Req 2A Req 2B Which company appears to generate greater returns on stockholders' equity in 2021? Business World Fun and Games Both Companies appear to generate the same return on equity. 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 Business World times Fun and Games times Req 1A Req 1B Reg 2A Req 2B Which company do investors appear to value more? Business World OFun and Games Both companies appear to generate the same P/E ratio
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