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Simon Companys year-end balance sheets follow. At December 31 2018 2017 2016 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500

Simon Companys year-end balance sheets follow.

At December 31 2018 2017 2016
Assets
Cash $ 31,800 $ 35,625 $ 37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $ 523,000 $ 445,000 $ 377,500
Liabilities and Equity
Accounts payable $ 129,900 $ 75,250 $ 51,250
Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $ 523,000 $ 445,000 $ 377,500

The companys income statements for the years ended December 31, 2018 and 2017, follow.

For Year Ended December 31 2018 2017
Sales $ 673,500 $ 532,000
Cost of goods sold $ 411,225 $ 345,500
Other operating expenses 209,550 134,980
Interest expense 12,100 13,300
Income taxes 9,525 8,845
Total costs and expenses 642,400 502,625
Net income $ 31,100 $ 29,375
Earnings per share $ 1.90 $ 1.80

Additional information about the company follows.

Common stock market price, December 31, 2018 $ 30.00
Common stock market price, December 31, 2017 28.00
Annual cash dividends per share in 2018 0.29
Annual cash dividends per share in 2017 0.24

To help evaluate the company's profitability, compute the following ratios for 2018 and 2017: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield.

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1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the return on common stockholders' equity for each year. Return o Return On Common Stockholders' Equity I Choose Denominator: | / Average common stockholders' equity I $ - Return Choose Numerator: Preferred dividends 31,1001 - 29,375 - Net income 2018 $ 2017 $ 28 = 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the price-earnings ratio for each year. Price-Earnings Ratio Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 2018 2017 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the dividend yield for each year. Dividend Yield Choose Denominator: Choose Numerator: = Dividend Yield Dividend yield 2018 IIII 2017 0 %

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