CP11-5 (Algo) Computing and Interpreting Return on Equity (ROE) and Price/Earnings (P/E) Ratios [LO 11- 5] TransGlobal, and GEM Airways are two publicly traded airline companies. They reported the following in their financial statements (in millions of dollars, except per-share amounts and stock prices): TransGlobal GEM 2021 2020 2021 2020 Net income Total stockholders' equity Earnings per share. Stock price when annual results reported $ 4,195 $ 3,622 14,137 14,360 5.76 4.59 54.32 57.03 $ 2,735 $ 3,533 10,123 10,700 4.38 5.87 59.74 56.76 Required: 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 1A Req 1B Req 2A Req 2B 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.) TransGlobal GEM Airways ROE % % Req 1A Req 1B >