Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio Current Year: 1 Year Ago: Complete this question by entering your answers in the tabs below. 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 Denominator: Choose Numerator: = Dividend Yield Dividend yield Current Year: 1 Year Ago Simon Company's year-end balance sheets follow. At December 31 Current 1 yr Ago 2 Yrs Ago Yr $ 31, 3ee 88,280 98,099 10,055 312, 346 $540,000 $ 34,6ee $37,600 62,1ee 54, eee 84,8ee57, eee 10,8154 ,264 327,685227,136 $500,eee $ 380, eee 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 $ 134, 460 $ 85, 345 $ 50,662 101,529 118,452 162,50 162,500 141,520 133,705 $540,000 $500,000 82,300 162,500 84,538 $ 380, eee 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 Earnings per share Current Yr $ 702, eee $428, 220 217,620 11,934 9, 126 666, 9ee 1 Yr Ago $ 595, eee $386,750 152, 535 13,685 8,925 559,895 $ 35, les $ 35. lee 2.16 2.16 Additional Information about the company follows. 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 8.36 0.18 For both the Current Year and 1 Year Ago, compute the following ratlos: 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. 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 Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago: (Required 1 Required 2 > 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 higher market expectations for future growth?
