Two online magazine companies reported the following in their financial statements: Outdoor Fun BetterWorth 2020 $ 171,173 417,049 2.98 57.20 2021 2020 $ 105,000 537,186 1.80 52.40 2021 $ 85,500...


Two online magazine companies reported the following in their financial statements:<br>Outdoor Fun<br>BetterWorth<br>2020<br>$ 171,173<br>417,049<br>2.98<br>57.20<br>2021<br>2020<br>$ 105,000<br>537,186<br>1.80<br>52.40<br>2021<br>$ 85,500<br>397,151<br>1.10<br>30.05<br>$ 107,604<br>462,814<br>Net income<br>Total stockholders'<br>Earnings per share<br>Stock price when annual results reported<br>equity<br>2.19<br>48.54<br>Required:<br>1-a. Compute the 2021 ROE for each company.<br>1-b. Which company appears to generate greater returns on stockholders' equity in 2021?<br>2-a. Compute the 2021 P/E ratio for each company.<br>2-b. Which company do investors appear to value more?<br>Complete this question by entering your answers in the tabs below.<br>Req 1A<br>Req 1B<br>Req 2A<br>Req 2B<br>Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.)<br>ROE<br>Outdoor Fun<br>%<br>BetterWorth<br>%<br>< Req 1A<br>Req 1B ><br>

Extracted text: Two online magazine companies reported the following in their financial statements: Outdoor Fun BetterWorth 2020 $ 171,173 417,049 2.98 57.20 2021 2020 $ 105,000 537,186 1.80 52.40 2021 $ 85,500 397,151 1.10 30.05 $ 107,604 462,814 Net income Total stockholders' Earnings per share Stock price when annual results reported equity 2.19 48.54 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="">

Jun 11, 2022
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