Simon Company's year-end balance sheets follow. N 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 $ 34,900 $ 36,300 88,400 64,500 50,600 97,237 83,700 52,600 10,427 9,261 3,703 332,936 257,639 196,797 $560,000 $450,000 $340,000 $139,440 $ 74,529 $ 44, 431 107,386 101,430 75,140 162,500 162,500 162,500 150,674 111,541 57,929 $560,000 $450,000 $340,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 $728.000 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $444,080 225.680 12,376 9.464 2016 $ 535,500 $348,075 135,482 12,317 8.033 503, 907 $ 31,593 600 400 1.94 Additional information about the company follows. Common stock market price, December 31, 2017 Common stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 2016 $31.00 29.00 0.20 0.10 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31 3. Dividend yield Complete this question by entering your answers in the tabs below. Required i 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'Equi Return on common stockholders' equity 2017| 2016 - 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio 2017 2016 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the dividend yield for each year. (Round your answers to decimal places.) Dividend Yield 1 Choose Denominator: Choose Numerator: = = Dividend Yield Dividend yield 2017 2016 Required 2
