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Two onne magazine companies reported the tolowing in their financial statements: 20152014 015 $105,500 $107,704 $ 86,000 $171,273 Net income Total stockhokders' equly Earnings per
Two onne magazine companies reported the tolowing in their financial statements: 20152014 015 $105,500 $107,704 $ 86,000 $171,273 Net income Total stockhokders' equly Earnings per share Stock price when annual results reported 542, 186 467,814 402,151 422,049 3.09 2.00 52.15 2.29 48.79 1.20 30.30 57.45 Required: 1a. Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.) Fun and Games 1-b. Which company appears to generate greater returns on stockholders equity in 2015? Fun and Games OBoth Companies appear to generate the same return on equity 2a. Compute the 2015 PIE ratio for each company, (Round your answers to 1 decimal place) P/E Ratio times Fun and Games times 2-b. Which company do investors appear to value more? Businessworld O Fun and Games Both Companies appear to generate the same retun on equity
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