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 $ 31,600 $ 34,300 $ 37,700 89, 100 63,800 52,800 60,235 83,100 53,500 11,322 8,849 3,512 397,743 239,951 162.488 $590,000 $430,000 $310,000 Total assets $145,441 $ 72,670 $ 40,102 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 113,138 97,911 68,510 162,500 162,500 162,500 168,921 96,919 38,888 $590,000 $430,000 $310,000 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 Current Yr $767,000 $467,870 237,770 13,039 9,971 728,650 1 Yr Ago $ 511,700 $332, 605 129,460 11,769 7,676 481,510 $ 30,190 $ 38,350 Net income $ 2.36 $ 1.86 Earnings per share Additional information about the company follows. The company's income statements for the current Year and 1 Year Ago, follow, For Year Ended December 31 Salen Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $767,000 $467,870 237,770 13,039 9,971 728,650 $ 38,350 1 Yr Ago $511,700 $332,605 129,460 11,769 7,676 481,510 $ 30,190 Earnings per share $ 2.36 $ 1.86 Additional information about the company follows. $32.00 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 30.00 0.26 0.13 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. thir question by entering your answers in the tabs below. Additional information about the company follows. $32.00 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 30.00 0.26 0.13 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 3 Required 2a Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity 7 Choose Denominator: Choose Numerator: Return On Common Stockholders! Equity Return on common stockholders' equity 0 % Average common stockholders' equity Preferred dividends Net income 0 % Current Year: 1 Year Ago: Required 2 > Bruno $32.00 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 30.00 0.26 0.13 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 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: 1 Choose Denominator: Market price per common share 1 Earnings per share Price-Earnings Ratio Price-earnings ratio 0 7 0 Current Year: = 1 1 Year Ago: Required 2a >
