Transcribed image text: 00 Simon Company's year-end balance sheets follow. Current 1 Yr Ago 2 Yrs Ago 2.22 points 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 $ 31,200 $ 35,000 $ 38,000 88,500 64,600 55,500 63,248 84,700 51,200 10,440 9,030 4,264 361,612 236,670 231,036 $555,000 $430,000 $380,000 eBook Hint Print $142, 341 $ 74,123 $ 50,662 References 103,297 100,878 82,300 162,500 162,500 162,500 146,862 92,499 84,538 $555,000 $430,000 $380,000 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 Earnings per share Current Yr $721,500 $440, 115 223,665 12,266 9,380 685,426 $ 36,074 $ 2.22 1 Yr Ago $511,700 $332,605 129,460 11,769 7,676 481,510 $ 30,190 $ 1.86 00 Additional information about the company follows. 2.22 points 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 $31.00 29.00 0.32 0.16 eBook Hint For both the Current Year and 1 Year Ago, compute the following ratios: Print References 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 8, 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 Numerator: Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Current Year