(Answered) Aarons inc and rent-a-center inc are two publicly traded

Accounting

Aarons, Inc., and Rent-A-Center, Inc., are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except per-share amounts and stock prices):

Required:

1. Compute the 2013 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 2013?

2. Compute the 2013 P/E ratio for each company (rounded to one decimal place). Do investors appear to value one companys earnings more than the others? Explain.

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