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 Connon stock, $10 par value Retained earnings Total liabilities and equity $ 32,000 $ 34,100 $ 37,800 89, 9ee 64,200 52,700 109,202 82,600 56,000 10,465 9,148 4,333 298,433 249,952 239,167 $540,000 $440,000 $ 390, eee $131,771 $ 76,591 $ 52,510 102,535 100,188 83,604 162,500 162,500 162,500 143, 194 100,721 91,386 $540,000 $440,000 $ 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 $702,eee $428,220 217,620 11,934 9,126 1 Yr Ago $ 523,680 $340, 340 132,471 12,043 7,854 492,708 $ 30,892 $ 1.90 666,900 $ 35,100 $ 2.16 Additional information about the 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 $28.00 26.00 0.24 0.12 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 Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Net income Return On Common Stockholders' Equity. Choose Numerator: 1 Choose Denominator: Preferred dividends 1 Average common stockholders' equity 35.100 01/ 30,892 01/ Return On Common Stockholders' Equity Return on common stockholders' equity 0 % Current Year: $ 1 Year Ago: S 0 % 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 Choose Numerator Choose Denominator: Market price per common share 1 Earnings per share Price-Earnings Ratio Price-earnings ratio Current Year: 1 11 11 0 1 Year Ago: 1 0 0 Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: 1 Choose Denominator: Annual cash dividends per share Market price per share Current Year Dividend Yield = Dividend yield 0 % 1 / 1 Year Ago 0 %
