Simon Company's year-end balance sheets follow. Current 1 Yr Ago 2 Yrs Ago Yr 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 $ 31,400 $ 34,500 $ 37,100 89,900 62,700 50,600 96,409 82,000 52,400 9,860 9,120 3,555 307,431 241, 680 176, 345 $535,000 $430,000 $320,000 $130,551 $ 73,397 $ 42,662 102,592 99,889 72,842 162,500 162,500 162,500 139,357 94,214 41,996 $ 535,000 $430,000 $320,000 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 511,700 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 $695,500 $424, 255 215, 605 11,824 9,042 660,726 $ 34,774 $332, 605 129,460 11,769 7,676 481,510 $ 30,190 1.86 $ 2.14 $ $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 0.26 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 7, 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 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: 5 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 future grow 3. Dividend yield 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: Return On Common Stockholders' Equity Relum on common stockholders' equity % Current Year: 1 Year Ago: Yol Roquired Required 2 >
