Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. two music companies reported the following in thei

Two music companies reported the following in their financial statements: ...

70.2K

Verified Solution

Question

Accounting

Two music companies reported the following in their financial statements:

Urban Youth Sound Jonx
2018 2017 2018 2017
Net income $ 26,900 $ 23,702 $ 43,500 $ 36,139
Total stockholders' equity 327,101 240,399 456,302 461,198
Earnings per share 1.10 1.00 0.95 0.85
Stock price when annual results reported 17.35 15.50 13.15 11.45

Required:

1-a. Compute the 2018 ROE for each company.

1-b. Which company appears to generate greater returns on stockholders equity in 2018?

2-a. Compute the 2018 P/E ratio for each company.

2-b. Which company investors appear to value more?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

describe what elements are critical for COP II and clathrin coat formation to nucleate.

Biology
Q

How do you determine if peaks on an emission and excitation spectra are for Raman scattering...

Chemistry
Q

A gas mixture with a total pressure of 770 mmHg contains each of the following gases...

Chemistry
Q

1) a car of mass 999 kg traveling at 72.0 km/hour enters a flat(non-banked) and dry...

Physics
Q

Income Statement Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle...

Accounting
Q

Which of the following molecules is an amino acid Select all that apply HO A...

Biology
Q

Your company wants to make the largest and most luxurious rectangular dog kennels possible with...

Basic Math
Q

4 The graph of the first derivative f of a function f is shown Assume...

Calculus
Q

All interest paid on a construction load should be capitalized as part of the cost...

Accounting
Q

Sweeten Company had no jobs in progress at the beginning of the year and no...

Accounting
Q

Fox Bhd RM'000 120,000 Question 1 (60 marks) Statements of Financial Position as at 31...

Accounting
Q

the salary paid to the president of a conpany would be classified on the income...

Accounting