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 >

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4AP

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Two online magazine companies reported the following in their financial statements: BetterWorth Outdoor Fun 2021 2020 2021 2020 $ 109,104 $ 94,500 $ 172,673 $ 112,500 612,186 Net income Total stockholders' equity Earnings per share Stock price when annual results reported 537,814 3.69 472,151 492,049 3.70 2.60 4.48 55.65 52.29 33.80 60.95 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? X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE BetterWorth 18.4 X % Outdoor Fun 0.2 X %
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Common Stockholders' Profitability Analysis A company reports the following: Net income$135,000Preferred dividends5,400Average stockholders' equity1,022,727Average common stockholders' equity651,256 Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equityfill in the blank 1 %b. Return on Common Stockholders’ Equityfill in the blank 2 % Please dont provide solution in an image based thanks