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Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid

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Simon Company's year-end balance sheets follow. Current Yr 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-tern notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,700 $ 34,700 36,100 89,800 54,300 59,100 38,878 84,700 57.000 9,979 9,364 3,960 349,643 261,936 203,840 5520,000 $455,000 $360,000 $126,890 $ 76,126 $ 46,570 98,738 104,650 80,356 162,500 162,500 162,500 131,872 111,724 70,574 $520,000 $455,000 $360,000 The company's income statements for the Current Year and 1 Year Ago, foliow. For Year Ended December 31 Current y 1 Yr Ago Sales 5676,880 $541,450 Cost of goods sold $412,360 $351,943 Other operating expenses 209,560 136,987 Interest expense 11,492 12,453 Income tax expense 8,788 8,122 Total costs and expenses 642,200 509,505 Net Income $ 33,800 $ 31,945 $ $ 2.88 1.97 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $31.00 29.00 0.30 0.15 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 of 6 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 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: 1 Choose Denominator: Price-Earnings Ratio 1 Price-earnings ratio Current Year: 1 0 1 Year Ago: / 0

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