Simon Company's year-end balance sheets follow. Current 1 Yr Ago 2 Yrs Ago 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. $ 34,900 $ 38,000 88,70062,900 51,100 59,914 84,500 55,200 11,1729,5453,414 408,814 258, 155 172,286 $600,000 $450,000 $320,000 $147,906 $ 75,289 $ 42,662 109,416 102,46571, 427 162,500 162,500 162,500 180,178 109,74643, 411 $600,000 $450,000 $320,000 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 $ 780,000 $475,800 241,800 13,260 10,140 741,000 $ 39,000 $ 2.40 Yr Ago $ 535,500 $348,075 135,482 12,317 8,033 503,907 $ 31,593 $ 1.94 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 0 .22 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 e 3. Dividend yield. 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: Required 2 > ceo 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 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 1 Choose Denominator: Price-Earnings Ratio Price-eamings ratio Current Year: 1 Year Ago: 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 gu 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 growth? ....ings ratio of 7, which company has higher market expectations for future Which company has higher market expectations for future growth? 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 ga 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 36 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Denominator: Choose Numerator: Dividend Yield Dividend yield Current Year: 1 Year Ago
