Net income Total stockholders' equity Earnings per share Stock price when annual results reported Required: Luna Here 2021 2020 2021 $ 4,105 $ 3,607 $ 2,645 2020 $ 3,518 13,987 5.73 14,210 4.57 10,033 4.35 10,610 5.85 53.17 55.83 59.07 56.12 1-a. Compute the 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req LA Req 18 Req 2A Req 28 Compute the 2021 ROE for each company. Express ROE as a percentage, TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) Luna Incorporated Here to There Industries ROE %

Net income Total stockholders' equity Earnings per share Stock price when annual results reported Required: Luna Here 2021 2020 2021 $ 4,105 $ 3,607 $ 2,645 2020 $ 3,518 13,987 5.73 14,210 4.57 10,033 4.35 10,610 5.85 53.17 55.83 59.07 56.12 1-a. Compute the 2021 ROE for each company. Express ROE as a percentage. TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req LA Req 18 Req 2A Req 28 Compute the 2021 ROE for each company. Express ROE as a percentage, TIP: Remember the bottom of the ROE ratio uses the average stockholders' equity. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) Luna Incorporated Here to There Industries ROE %

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...

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