Simon Company's year-end balance sheets follow. Current r 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,700 $ 34,300 $ 36, 400 89, 800 63,600 54,300 100, 288 84,600 57,300 10, 659 9,467 3, 342 317,553 268,033 158,658 $550,000 $460,000 $310,000 $136,950 $ 77, 740 $ 39,692 100, 298 108, 974 69,880 162,500 162,500 162,500 150, 252 110,786 37,928 $550,000 $460,000 $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 Net income Current Yr $715,000 $436,150 221, 650 12, 155 9,295 679, 250 $ 35,750 1 Yr Ago $547, 400 $355,810 138, 492 12,590 8,211 515, 103 $ 32, 297 Additional information about the company Tolows Comon stock market price, December 31, Current Year $29.00 Common stock market price, Decenber 31, 1 Year ago 27.00 Annual cash dividends per share in current Year 0.38 Annual cash dividends per share 1 Year Ago 0.19 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity 2. Dividend yield. 3. Price-earnings ratio on December 31 3a. Assuming Simon's competitoe has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders Edu Choose Numerator Choose Denominator: Preferred didends Average common stockholders equity Net incons Return On Common Stockholders'Equity Rotum on common stockholders equity 0142 Current Year: 1 Year Ago: 1. Retum on common stockholders' equity. 2. Dividend yield 3. Price-earnings ratio on December 31. 3a. Assuming Simon's competitor has a price earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required a 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 0.1% 0 % Current Year: 1 Year Ago 1. Return on common stockholders' eqully, 2. Dividend yield 3. Price-comings ratio on December 31 3a. Assuming Simon's competitor has a price earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3 Compute the price-earnings ratio for each voor. (round your answers to 2 decimal places) Price Earnings Ratio 1 Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 0 Current Year: 1 Year Ago: 1 = 0 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Dividend yield 3. Price earnings ratio on December 31, 3a. Assuming Simon's competitor has a price earnings ratio or 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth?
