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please help with questions 1 & 3 Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1

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Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,100 $ 34,300 $ 36,800 88,300 63,100 59,300 72,406 83,500 53,300 9,962 10,389 3,267 333, 232 293,711 147,333 $535,000 $485,000 $300,000 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 $135,879 $ 82,785 $ 39,996 99,574 110,434 66,300 162,500 162,500 162,500 137,047 129,281 31,204 $535,000 $485,000 $300,000 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 $695,500 $ 424, 255 215, 605 11,824 9,042 660, 726 $ 34,774 $ 2.14 1 Yr Ago $ 577,150 $375,148 146,019 13, 274 8,657 543.098 $ 34,052 S 2.10 Additional information about the company follows. Additional information about the company follows. $31.00 Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividende per share in Current Year Annual cash dividends per share 1 Year Ago 29.00 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 future growth? 3. Dividend yield Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 20 Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: Net income Preferred dividends 1 Average common stockholders' equity Current Year: $ 34,774 1 Year Ago: $ 34,052 Return On Common Stockholders' Equity Return on common stockholders' equity 0 0

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