Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago 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 $ 34,000 $ 37,500 89,400 63,100 52,000 49,155 82,500 52,900 11,172 9,135 3,665 419,173 246,265 193,935 $600,000 $435,000 $ 340,000 $146,412 $ 71,310 $ 45,329 112,800 97,048 75,140 162,500 162,500 162,500 178,288 104, 142 57,031 $600,000 $435,000 $ 340,000 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 Current Yr $780,000 $475,800 241,800 13,260 10,140 741,000 $ 39,000 $ 2.40 1 Yr Ago $ 517,650 $336,473 130,965 11,906 7.765 487,189 $ 30,541 1.88 Earnings per share 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 $ 30.00 28.00 0.22 0.11 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. 20. 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 20 Required 3 Compute the return on common stockholders' equity for each year Return On Common Stockholders Equity Choose Numerator: 1 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders oquity Current Year: 1 Year Ago: For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equily. 2. Price earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectati 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: Price-Earnings Ratio Price-eamings ratio Current Year: 11 1 Year Ago: Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago 0.22 0.11 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 ex 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 expectation growth Which company has higher market expectations for future growth Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago 0.22 0.11 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. 20. Assuming Simon's competitor has a price earnings ratio of 8, which company has higher market expectations for 3. Dividend yield Complete this question by entering your answers in the tabs below. Required: Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator Choose Denominator: Dividend Yield Dividend yield 96 Current Year: 1 Year Ago
