Simon Company's year-end balance sheet follow.
1.Return om common stockholders' equity.
2.Price-earnings ratio on December 31
2a.
3.
Exercise 13-11 Analyzing profitability LO P3 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 $ 31,100 $ 34,400 $ 36,700 88,400 65,000 55,300 11,638 84,600 53,000 10,427 10,282 3,557 418,435 285,718 181,443 $560,000 $480,000 $330,000 $136,651 $ 79,498 $ 43, 124 104,227 110,400 71,471 162,500 162,500 162,500 156,622 127,602 52,905 $560,000 $480,000 $330,000 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 $728,000 $444,080 225,680 12,376 9,464 691,600 $ 36,400 $ 2.24 1 Yr Ago $ 571,200 $371,280 144,514 13,138 8,568 537,500 $ 33,700 $ 2.07 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 $31.00 29.00 2.40 0.29 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 2a Required 3 Compute the return on common stockholders' equity for each year, Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: Preferred dividendo Average common stockholders' Net income equity Return On Common Stockholders! Equity Rotum on common stockholders equity 0 % 0 % Current Year: 1 Year Ago: 11 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.) Price-Earnings Ratio Choose Numerator: 1 Choose Denominator: Price-Earnings Ratio Market price per common share Earnings per share Price-earnings ratio Current Year: / 0 1 Year Ago: 0 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: Choose Denominator: Annual cash dividends per share Market price per share Current Year: 1 1 Year Ago 1 11 11 Dividend Yield Dividend yield 0 % 11 = 0 % Required 2a Required a
