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. 1 Yr Ago $ 532,000 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Current Yr $ 673,500 $ 411,225 209,550 127 100 9,525 $345,500 134,980 13,300 8,845 Nex 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 $673,500 $411,225 209,550 12,100 9,525 642,400 $ 31,100 1 Yr Ago $ 532,000 $345,500 134,989 13,300 8,845 502,625 $ 29,375 $ 1.80 Earnings per share $ 1.90 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 $ 30.00 28.00 0.29 0.24 For both the current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity Prire earnings ratio on December 21 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 2a Required 3 Compute the return on common stockholders' equity for each year. Rotum On Common Stockholders' Equity Choose Numerator: Choose Denominator Return On Common Stockholders'Equity Return on common stockholders equity Current Year 1 Year Ago 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 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: Price Earnings Ratio Price-earnings ratio Current Year: 1 Year Ago: 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 2a 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 higher market expectations for future growth 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 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: Choose Denominator: Dividend Yield Dividend yield Current Year: 1 Year Ago
