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?Help? Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory
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Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 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 $ 31,400 $ 34,100 $ 36,600 89,400 64,700 51,080 90,446 84,480 57,600 10,345 10,382 3,734 328,489 286,418 201,066 $550,000 $480,000 $350,000 $136,950 $ 83,554 $ 46,200 105,468 110,400 76,576 162,500 162,500 162,500 145,082 123,546 64,724 $550,000 $480,000 $350,000 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 $715,000 $436,150 221,650 12, 155 9,295 679, 250 $ 35,750 1 Yr Ago $571,200 $371,289 144,514 13,138 8,568 537, 580 $ 33,700 $ 2.07 $ 2.20 Additional information about the company follows $30.00 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 28.00 0.24 8.12 9,293 income tax expense Total costs and expenses Net income Earnings per share 679,250 $ 35,750 $ 2.20 537,500 $ 33,700 $ 2.07 Additional information about the company follows. $30.00 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 28.00 0.24 0.12 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 3. Dividend yield 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 % 0.12 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: Required2 Required 20 Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator Choose Denominator Price Earnings Ratio Price-carrings ratio Current Year: 1 Year Ago: 1 1 1 Hequired 1 Required 2a > 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 20 Required 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 2 > Step by Step Solution
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