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Two online magazine companies reported the following in their financial statements: BusinessWorld 2015 Fun and Games 2015 2014 2014 Net income Total stockholders' equity Earnings
Two online magazine companies reported the following in their financial statements: BusinessWorld 2015 Fun and Games 2015 2014 2014 Net income Total stockholders' equity Earnings per share Stock price when annual results reported $108,500 $108,304 S 89,920 $171,873 572,186 497,814 432,151 452,049 3.68 58.95 2.90 53.65 2.89 50.29 1.80 31.80 Required 1-a. 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 returns on stockholders' equity in 2015? BusinessWorld O Fun and Games Both Companies appear to generate the same return on equity 2-a. Compute the 2015 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E Ratio BusinessWorld imes Fun and Games imes
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