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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 $ 31,600 $ 34,400 $ 37,300 90,000 62,100 50,200 67,426 83,100 59,200 11,514 10,389 4,070 399,460 295,011 219,230 $600,000 $485,000 $370,000 $149,400 $ 80,326 $ 49,817 115,056 113,781 82,588 162,500 162,500 162,500 173,044 128, 393 75,095 $600,000 $485,000 $370,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 780,000 $ 577,150 Cost of goods sold $ 475,800 $375,148 Other operating expenses 241,800 146,019 Interest expense 13,260 13,274 Income tax expense 10,140 8,657 Total costs and expenses 741,000 543,098 Net income $ 39,000 $ 34,052 Earnings per share $ 2.40 $ 2.10 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 0.36 0.18 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 6, 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 Denominator Average common Choose Numerator: Return On Comman Stockholders' Equity Return on common stockholders' equity 014 Net income Preferred dividends stockholders' equity Current Year: 1 Year Ago

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