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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
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 Earnings per share Current Year $ 354,894 180,356 9,890 7,563 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 $ 581,794 552,703 $ 29,091 $ 1.79 1 Year Ago $ 459,108 $ 298,420 116,154 10,559 6,887 432,020 $ 27,088 $ 1.67 $ 32.00 30.00 0.36 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 0.18 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Numerator: Preferred dividends Return On Equity Denominator: = Return On Equity = Return on equity = 0% = 0 %
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