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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 $ 31,900 $ 34,500 $ 37,600 88,700 64,300 53,100 23,134 82,700 59,700 9,869 9,863 3,881 376,397 273,637 205,719 $530,000 $465,000 $360,000 $128,011 $ 79,371 $ 47,995 101,633 110,159 77, 173 162,500 162,500 162,500 137,856 112,970 72,332 $530,000 $465,000 $360,000 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 $689,000 $420,290 213,590 11,713 8,957 654,550 $ 34,450 $ 2.12 1 Yr Ago $ 553,350 $ 359, 678 139,998 12,727 8,300 520,703 $ 32,647 Earnings per share 2.01 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price. December 31. 1 Year Aco $28.00 26.00 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 $28.00 26.00 0.22 0.11 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 return on common stockholders' equity for each year. Retum On Common Stockholders Equity Choose Numeratori Choose Denominator Return On Common Stockholders! Equity Return on common stockholders equity % % Current Year: 1 Year Ago: Required 2 >

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