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Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Simon Company's year-end balance sheets follow 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 Current Yr 1 Yr Ago 2 Yrs Ago 31,200 $34,400 $ 37,700 88,300 63,500 58,700 92,988 10,816 84,900 9,332 59,300 3,989 351,696 247,868 210,311 $575,000 $440,000 $370,000 $140,312 $72,129 $ 50,305 109,181 101,200 80,135 162,500 162,500 162,500 163,007 104,171 77,060 $575,000 $440,000 $370,000 Sales The company's Income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 1 Yr Ago $ 523,600 Current Yr $747,500 Cost of goods sold $455,975 $340,340 Other operating expenses 231,725 132,471 Interest expense 12,708 Income tax expense 9,718 Total costs and expenses 710,126 Net income $ 37,374 2.30 12,043 7,854 492,708 30,892 1.90 Earnings per share Additional information about the company follows. ok t nt ences 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: Net income Preferred dividends Average common stockholders' equity Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: $ 1 Year Ago: $ 37.374 30,892- 0% 0% Required 1 Required 2 > ete this qu as in the es Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago: Choose Numerator: Price Earnings Ratio Choose Denominator Price Earnings Ratio Price-earnings ratio 0 0 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 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago Choose Numerator: Dividend Yield Choose Denominator:

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