PA$11-5($Algo$)$ Computing and Interpreting Return on Equity $($ROE$)$ and Price$/$Earnings $($P$/$E$)$ Ratios $[$LO $11-$

$5]$

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

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 $1A$

Compute the $2021$ ROE for each company. $($Round your answers to $1$ decimal place.$)$