Two online magazine companies reported the following in their financial statements: Outdoor Fun 2021 $ 105,000 537,186 1.80 52.40 BetterWorth Net income Total stockholders' equity Earnings per share Stock price when annual results reported 2020 $ 107,604 462,814 2.19 48.54 2021 $ 85,500 397,151 2020 $ 171,173 417,049 2.98 57.20 1.10 30.05 Required: 1-a. Compute the 2021 ROE for each company. 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 1A Req 1B Req 2A Req 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE Outdoor Fun BetterWorth % Req 1A Req 1B >

Two online magazine companies reported the following in their financial statements: Outdoor Fun 2021 $ 105,000 537,186 1.80 52.40 BetterWorth Net income Total stockholders' equity Earnings per share Stock price when annual results reported 2020 $ 107,604 462,814 2.19 48.54 2021 $ 85,500 397,151 2020 $ 171,173 417,049 2.98 57.20 1.10 30.05 Required: 1-a. Compute the 2021 ROE for each company. 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 1A Req 1B Req 2A Req 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE Outdoor Fun BetterWorth % Req 1A Req 1B >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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