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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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,000 $ 35,000 $37,700 88,800 63,500 58,500 43,397 85,000 52,400 10,722 9,532 4,096 396,081 251,968 227,304 $570,000 $445,000 $ 380,000 $146,188 $ 76,709 $ 48,655 105,017 101,326 83,980 162,500 162,500 162,500 156,295 104,465 84,865 $570,000 $445,000 $ 380,000 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 Current Yr $741,000 $452,010 229,710 12,597 19,633 703,950 $ 37,050 $ 2.28 1 Yr Ago $ 529,550 $344, 208 133,976 12,180 7,943 498, 307 $ 31,243 1.92 Earnings per share 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 $ 33.00 31.00 2.26 0.1 For both the current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity 2. Price earnings rotio on December 31 20. Assuming Simon's competitor has a price-earings 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. 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 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 return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator Choose Denominator Return On Common Stockholders' Equity Ratum on common stocholders' equity Current Year: 1 Year Ago: Required 2 > 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 Famions. Ratio Choose Denominator: Choose Numerator: Price Earnings Ratio Price earnings ratio Current Year: 1 Year Ago: 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 7, which company has higher market expectations for future growth? Which company has higher markiet expectations for future growth? 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 Choose Numerators Choose Denominator: Dividend Yield Dividend yield % 1 Current Year: 1 Year Ago

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