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 $ 31,700 $ 34,100 $ 37,100 88,500 64,500 53,000 46,375 83,500 57,500 10,650 10,083 3,520 377,775 292,817 168,880 $555,000 $485,000 $320,000 $139,577 $ 80,326 $ 41,818 102,253 112,666 71, 427 162,500 162,500 162,500 150,670 129,508 44,255 $555,000 $485,000 $320,000 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 $721,500 $440, 115 223, 665 12,266 9,380 685,426 $ 36,074 $ 2.22 1 Yr Ago $ 577, 150 $375,148 146,019 13, 274 8,657 543,098 $ 34,052 $ 2.10 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 $31.00 29.00 0.24 0.12 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 7, 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 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Chooso Numerator: Price Earnings Ratio Choose Denominator 1 1 Price-Earnings Ratio Price earnings ratio Current Year: 1 Year Ago: 1 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 $31.00 29.00 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. 2a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future g 3. Dividend yield. Complete this question by entering your answers in the tabs below. 5 Required: Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Net income Earnings per share $ 36,074 $ 2.22 $ 34,052 $ 2.10 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 dividenda per share 1 Year Ago $31.00 29.00 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. 2a. Assuming Simon's competitor has a price-earnings ratio of 7, 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 dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield 1 Choose Denominator: Choose Numerator: Dividend Yield Dividend yield % 1 Current Year: 1 Year Ago % PH
