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Simon Company's year - end balance sheets follow. At December 3 1 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 2 5

Simon Company's year-end balance sheets follow.
At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 25,893 $ 29,964 $ 29,989
Accounts receivable, net 77,29953,49740,801
Merchandise inventory 96,24570,69243,014
Prepaid expenses 8,5057,7863,332
Plant assets, net 230,930216,399191,964
Total assets $ 438,872 $ 378,338 $ 309,100
Liabilities and Equity
Accounts payable $ 108,186 $ 63,300 $ 41,209
Long-term notes payable 81,68385,27768,311
Common stock, $10 par value 163,500163,500163,500
Retained earnings 85,50366,26136,080
Total liabilities and equity $ 438,872 $ 378,338 $ 309,100
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 Current Year 1 Year Ago
Sales $ 570,534 $ 450,222
Cost of goods sold $ 348,026 $ 292,644
Other operating expenses 176,866113,906
Interest expense 9,69910,355
Income tax expense 7,4176,753
Total costs and expenses 542,008423,658
Net income $ 28,526 $ 26,564
Earnings per share $ 1.76 $ 1.63
Additional information about the company follows.
Common stock market price, December 31, Current Year $ 29.00
Common stock market price, December 31,1 Year Ago 27.00
Annual cash dividends per share in Current Year 0.22
Annual cash dividends per share 1 Year Ago 0.11
For both the current year and one year ago, compute the following ratios:
1. Return on common stockholders' equity.
2. Dividend yield.
3a. Price-earnings ratio on December 31.
3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth?Return on common stockholders' equity.
Dividend yield.
3a. Price-earnings ratio on December 31.
3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth?
Complete this question by entering your answers in the tabs below.
Required 1
Required 3A
Required 3B
Compute the return on common stockholders' equity for each year.
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