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Two online magazine companies reported the following in their financial statements: BusinessWorld Fun and Games 2015 2014 2015 2014 Net income $ 109,000 $ 108,404
Two online magazine companies reported the following in their financial statements: |
BusinessWorld | Fun and Games | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Net income | $ | 109,000 | $ | 108,404 | $ | 90,420 | $ | 171,973 | |||||
Total stockholders' equity | 577,186 | 502,814 | 437,151 | 457,049 | |||||||||
Earnings per share | 3.00 | 2.99 | 1.90 | 3.78 | |||||||||
Stock price when annual results reported | 53.90 | 50.54 | 32.05 | 59.20 | |||||||||
Required: | |
1-a. | Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.) |
1-b. | Which company appears to generate greater returns on stockholders equity in 2015? | ||||||
|
2-a. | Compute the 2015 P/E ratio for each company. (Round your answers to 1 decimal place.) |
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