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-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,200 $ 34,200 $ 37,000 88,200 63,100 52,100 2,505 84,200 58,500 10,534 10,291 4,333 427,561 303,209 238,067 $560,000 $495,000 $390,000 $143,623 $ 83,655 $ 51,480 106,333 113,850 83,604 162,500 162,500 162,500 147,544 134,995 92,416 $560,000 $495,000 $390,000 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 $728,000 $444,080 225,680 12,376 9,464 691,600 $ 36,400 1 Yr Ago $589,050 $382,883 149,030 13,548 8,836 554, 297 $ 34,753 $ 2.14 $ 2.24 Additional information about the company follows. $ 33.00 Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividend per share in Current Year Annual cash dividends per share 1 Year Ago 31.00 0.34 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 return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Denominator: Return On Common Stockholders Equity Return on common stockholders equity Current Year: 1 Year Ago: DEO SOTONA O 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-camningsmid for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio 1 Choose Denominator: Price-Earnings Ratio Price-earnings ratio - Current Year: 1 Year Ago: ( Required 1 Required 2. > 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 Asuming Simon's competitor has a price-earings ratio of 8, which company has higher market expectations for future growth? 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 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 a Required 3 Compute the dividend yield for each year. (Round your awwers to 2 decimal places.) Dividend Yield Choose Denominator: Choose Numerator Dividend Yield Dividend yield 1 Year Ago
