Aaron's, Inc., and Rent-A-Center, Inc., are two publicly traded rental companies. They reported the following in their 2008 financial statements (in millions of dollars, except per share amounts and stock prices): Net income Total stockholders equity Earnings per share Aaron's, Inc. Rent-A-Center, Inc. 2008 2007 2008 2007 $90.2 $80.3 $139.6 $76.3 761.5 673.4 1,079.2 947.1 1.69 1.48 2.10 1.11 18.35 Stock price when annual results reported 26.67 21.54 19.37 Compute the 2008 ROE for each company. Express ROE as a percentage rounded to one decimal place. Which company appears to generate greater returns on stockholders' equity in 2008?

Aaron's, Inc., and Rent-A-Center, Inc., are two publicly traded rental companies. They reported the following in their 2008 financial statements (in millions of dollars, except per share amounts and stock prices): Net income Total stockholders equity Earnings per share Aaron's, Inc. Rent-A-Center, Inc. 2008 2007 2008 2007 $90.2 $80.3 $139.6 $76.3 761.5 673.4 1,079.2 947.1 1.69 1.48 2.10 1.11 18.35 Stock price when annual results reported 26.67 21.54 19.37 Compute the 2008 ROE for each company. Express ROE as a percentage rounded to one decimal place. Which company appears to generate greater returns on stockholders' equity in 2008?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
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