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Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 yr Ago 2 Yrs Ago $ 31,500 $ 34,200 $ 37,200 89,800 62,400

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Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 yr Ago 2 Yrs Ago $ 31,500 $ 34,200 $ 37,200 89,800 62,400 59,100 106,074 82,800 56,300 11,192 10,080 4,376 356,434 290,520 233,024 $595,000 $480,000 $390,000 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 $151,118 $ 81,120 $ 50,450 109, 623 110,400 86,190 162,500 162,500 162,500 171,759 125,980 90,860 $595,000 $480,000 $390,000 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 $773,500 $471,835 239,785 13,150 10,056 734,826 $ 38,674 $ 2.38 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. Annual condividenda per share 1 Year ago 0.19 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-earings ratio of 8, 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 20 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 > LUL 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 0.38 0.19 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 8, which company has higher market expectations for future 3. Dividend yield. 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 + / Choose Denominator 1 Price-Earnings Ratio Price-earnings ratio Current Year: / 1 Year Ago: / wa $31.00 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 29.00 0.38 0.19 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 8, 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 Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? $31.00 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 29.00 0.38 0.19 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 8, which company has higher market expectations for fut 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.) Choose Numerator: Dividend Yield 1 Choose Denominator: 1 Dividend Yield Dividend yield % 1 Current Year: 1 Year Ago / = %

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