At December 31 Current Yr 1 Yr Ago 2 Yrs Ago 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 $32,000 $ 34,800 $ 36,500 88,600 62,800 56, 800 4,853 83, 100 58,000 11,434 9, 240 3,920 453,113 250, 060 204, 780 $590,000 $440,000 $360,000 $ 148,379 $ 72,873 $ 48,946 113, 138 104, 236 77,969 162,500 162,500 162,500 165.989 100, 391 70,585 $590,000 $440,000 $360,000 The company's income statements for the Current Year and 1 Year Ago follow. 1 yr ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $767.000 $467,870 237,770 13,039 9.971 728,650 $ 38,350 $ 2.36 $ 523,600 $340, 340 132,471 12,043 7,854 492,708 $ 30,892 $ 1.90 Additional information about the company follows 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 $28.00 26.00 0.40 0.20 For both the Current Year and 1 Year Ago, compute the following ratios 1. Return on common stockholders' equity 2. Price-earings ratio on December 31 20. 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 retum on common stockholders' equity for each year. Retum On Common Stockholders' Equity Choose Numerator: 1 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders equity % Current Year: 1 Year Ago: Ramal Required 2 > Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Choose Numerator: Price-Eamings Ratio Choose Denominator: Price Earnings Ratio Price earnings ratio Current Year 1 Year Ago: = Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has highet market expectations for future growth? Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: Choose Denominator: 1 Current Year: 1 1 Year Ago Dividend Yield Dividend yield %
