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 $ 31,800 89,500 112,500 10,700 278,500 $523,000 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 9,375 5,000 255,000 230,500 $445,000 $377,500 $129,900 $ 75,250 $ 51,250 98,500 163,500 131, 100 $523,000 101,500 83,500 163,500 163,500 104,750 79,250 $445,000 $377,500 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 $ 673,500 $411,225 209,550 12, 100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 Additional information about the company follows. $30.00 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 0.29 0.24 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 canh dividends per share 1 year ago $30.00 20.00 0.29 0.24 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 10, 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 23 Required Compute the return on common stockholders' equity for each year. Return On Common Stockholders Equity Choose Numerator 1 Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity Current Year % 1 Year Ago 1 Required 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 10, 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-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Denominator: Price-Earnings Ratio Price earnings ratio Choose Numerator Current Year: 1 Year Ago: For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earings ratio on December 31. 2a. Assuming Simon's competitor has a price-earings ratio of 10, 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 za Required 3 Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for future growth? Which company has highet market expectations for future growth? (Required 2 Required 3 > Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your swers to 2 decimal places.) Dividend Yield 1 Choose Denominator: Choose Numerator: 11 Dividend Yield Dividend yield % Current Year: 1 Year Ago: . / %
