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Simon companies year and balance sheets follow: The companies income statements for the current year and 1 year ago follow: additional information about the company
Simon companies year and 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 $ 31,700 $ 35,000 $ 36,700 88,200 62,400 53,700 111,287 83,200 57,400 11,400 9,651 3,740 357,413 264,749 188,460 $600,000 $455,000 $340,000 $147,906 $ 76,895 $ 45,329 115,056 104,650 74,389 162,500 162,500 162,500 174,538 110,955 57, 782 $600,000 $455,000 $340,000 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 $780,000 $475,800 241,800 13,260 10, 140 741,000 $ 39,000 $ 2.40 1 Yr Ago $ 541,450 $351,943 136,987 12,453 8,122 509,505 $ 31,945 $ 1.97 $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 0.28 0.14 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 Denominator Return On Common Stockholders Equity Return on common stockholders' equity % Current Year: 1 Year Ago: Required 2 > 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.) Choose Numerator: Price-Earnings Ratio 1 Choose Denominator: 1 Price-Earnings Ratio Price-earnings ratio 1 Current Year: 1 Year Ago: Required 1 Required 2a > Complete this question by entering your answers in the tabs below. 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? The companies income statements for the current year and 1 year ago follow:
additional information about the company follows:
for both the current year and one year ago, compute the following ratios:
1. return on common stockholders equity
2. Price earning ratio on December 31
3. assuming Simmons competitor has a price earnings ratio of seven, which company has a higher market expectation for future growth?
4. dividend yield
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