Two online magazine companies reported the following in their financial statements: Required: 1. Compute the 2018 ROE

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Two online magazine companies reported the following in their financial statements:


Required:

1. Compute the 2018 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 2018?
2. Compute the 2018 P/E ratio for each company. Do investors appear to value one company’s earnings more than the other’s? Explain.

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Related Book For  book-img-for-question

Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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