5 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,000 $ 34,500 $ 36,300 89,400 64,300 56,500 91,672 84,700 52,500 10, 345 8,952 4,029 327,583 242,548 220,671 $550,000 $435,000 $370,000 ook Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $138,320 $ 73,515 $ 49,328 Int 103,400 100,050 80,135 162,500 162,500 162,500 145,780 98,935 78,037 $550,000 $435,000 $370,000 Int The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $ 715,000 $436,150 221,650 12, 155 9,295 679,250 $ 35,750 1 Yr Ago $ 517,650 $336, 473 130,965 11,906 7,765 487,109 $ 30,541 Earnings per share $ 2.20 $ 1.88 Additional information about the company follows. $33.00 Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago 31.00 0.38 0.19 For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has high growth? 3. Dividend yield. Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago 31.00 0.38 0.19 For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: Choose Denominato Return On Common Stockholders' Equity Return on common stockholders' equity Net income - Preferred dividends Average common stockholders' equity Current Year: $ 35,750 - 0 % 1 Year Ago: $ 30,541 7 0 % Required 2 >