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Two online magazine companies reported the following in their financial statements: Fun and Games 2015 2015 2014 2014 Net income Total stockholders' equity Earnings per
Two online magazine companies reported the following in their financial statements: Fun and Games 2015 2015 2014 2014 Net income Total stockholders' equity Earnings per share Stock price when annual results reported $115,000 $109,604 97,500 $173,173 637,186 562,814497,151 517,049 4.98 3.10 4.19 56.9053.54 4.20 Required: 1a. Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.) ROE BusinessWorld Fun and Games 1-b. Which company appears to generate greater retuns on stockholders equity in 2015? O BusinessWorld O Fun and Games O Both Companies appear to generate the same return on equity 2a. Compute the 2015 P/E ratio for each company (Round your answers to 1 decimal place.) P/E Ratio BusinessWorld Fun and Games times times
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