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 Easty Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 $ 34,300 $ 38,000 89, 300 62,700 58,500 101,707 83,600 50,400 11,253 9,870 4,138 340, 940 279,530 228,962 $575,000 $470,000 $ 380,000 $144,607 $ 79,430 $ 58,662 189, 181 108, 109 85,660 162,5ee 162,500 162, see 158,712 119,97e 81,178 $575,000 $47e, eee $ 380, eee 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 $747, 5ev $ 455,975 231,725 12,708 9.718 71e, 126 $ 37,374 1 Yr Ago $ 559,380 $ 353, 545 141,5e3 12,864 8,390 526, 302 $ 32.998 $ 2.30 $ 2.0 Additional Information about the company follows. For both the Current Year and 1 Year Ago, compute the following ratlos: 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 Numerator: Choose Denominator: Net income Preferred dividends Average common stockholders' equity Return On Common Stockholders' Equity Return on common stockholders' equity 096 096 Current Year: - 1 Year Ago: Required 2 > For both the Current Year and 1 Year Ago, compute the following ratlos: 1. Return on common stockholders' equity 2. Price-earnings ratio on December 31. 20. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for 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.) Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio Current Year: 0 1 Year Ago: O 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. 20. 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 Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? 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 20. 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 2 Required Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Denominator: Choose Numerator: Dividend Yield Dividend yield O 1 Current Year OS 1 Year Ago
