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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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,600 $ 34,100 $ 37,500 89,400 64,100 51,400 87,071 82,700 59,600 10,334 8,747 3,626 336,595 235,353 167, 874 $555,000 $425,000 $320,000 $135,431 $ 73,262 $ 41,395 102,253 96,772 72,842 162,500 162,500 162,500 154,816 92,466 43,263 $555,000 $425,000 $320,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $721,500 $ 505, 750 Cost of goods sold $440,115 $328,738 Other operating expenses 223,665 127,955 Interest expense 12,266 11,632 Income tax expense 9,380 7,586 Total costs and expenses 685,426 475,911 Net income $ 36,074 $ 29,839 Earnings per share $ 2.22 $ 1.84 Additional information about the company follows company follows 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 $33.00 31.00 0.24 0.12 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 return on common stockholders' equity for each year. Betum On Common Stockholders'Equity Choose Numerator Choose Denominator: Net income Preferred dividends Average common stockholders equity Current Year: 5 30.074 1 Year Ago $ 29,830 Return On Common Stockholders Equity Retum on common stockholders equity 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 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 dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: Choose Denominator: Annusash dividends per share Market price per share Current Year: 1 1 Year Ago Dividend Yield Dividend yield 0 % 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 carings 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. tos Required 1 Required 2 Requires 3 Required 3a Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: Choose Denominator Price-Earnings Ratio Market price per common share Earnings per share - Price-earnings ratio Current Year: 0 1 Year Ago: . 0

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