value: 4 10.00 points CP11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios [LO 11-5] Maroo's Rentals and John's Rentals. are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except per share amounts and stock prices): Marco's Rentals 2013 2012 John's Rentals 2013 2012 $ 115 $167 122 176 Net income Total stockholders' equity Earnings per share Stock price when annual results reported 1,109 1.168 1,340 1,296 1.53 2.22 3.02 28.22 34.83 2.28 25.32 29.07 Required 1-a. Compute the 2013 ROE for each company. Express ROE as a percentage. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) TIP: Remember that the bottom of the ROE ratio uses the average stockholders' equity. ROE Marco's Rentals John's Rentals 1-b. Which company appears to generate greater returns on stockholders' equity in 2013? John's Rentals Marco's Rentals 2-a. Compute the 2013 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E Marco's Rentals John's Rentals times times 2-b. Which company do investors appear to value more? Marco's Rentals John's Rentals