one question, multiple parts.

PA11-5 Computing and Interpreting Return on Equity (ROE) and Price/Earnings (PE) Ratios [LO 11-5] Two online magazine companies reported the following in their financial BusinessWorld 2015 2014 Fun and Games 2015 2014 Net income Total stockholders $105,000 $107,604 $ 85,500 $171,173 537,186 462,814 397,151 417,049 1.10 2.98 equity Earnings per share Stock price when 1.80 2.19 annual results reported 51.90 48.54 30.05 57.20 Required: 1- Compute the 2015 ROE for each company. (Round your answers to1 a. decimal place.) BusinessWorld Fun and Games 1 Which company appears to generate greater returns on stockholders b. equity in 2015? BusinessWorld Fun and Games Both Companies appear to generate the same return on equity 2 Compute the 2015 P/E ratio for each company. (Round your answers to a. 1 decimal place.) BusinessWorld Fun and Games times 2- b. Which company do investors appear to value more? BusinessWorld Fun and Games Both Companies appear to generate the same return on equity