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 $ 31,400 $ 34,400 $ 37,900 89, 100 63,000 54,400 38,848 82,280 54,100 11, 192 9,211 3,478 424, 460 241), 189 160, 122 $595,000 $430,000 $310,000 $146,673 $ 71,217 $ 40, 102 114,097 98,900 66,455 162,500 162,500 162,500 171, 730 971383 40,943 $595,000 $430,000 $310,000 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 $773,500 $471, 835 239, 785 13, 150 10,056 734 826 $ 38,674 $ 2.38 1 Yr Ago $511,700 $332,605 129,460 11, 769 7.676 481,510 $ 30, 190 $ 1.86 Additional information about the company follows. Common stock market price, December 31, current 30.00 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 0.38 0.19 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 6, 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 Comitan Stockholders Equity Return on common stockholders' equity % Current Year: 1 Year Ago: Required 2 > Connon 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 28.80 0.38 8.19 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 6, which company has higher market expectations for future grow 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Requiqed 2 Required 2a 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 Current Year: 1 Year Ago: Required 1 Required 2a > Common stock market price, December 31, Current Year Connon 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 9.38 0.19 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 6, 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 23 Required 3 Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Which company has higher market expectations for future growth Help CI Connon stock market price, December 31, Current Year Connen 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 0.38 0.19 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 6, 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: Current Year: Dividend Yield Dividend yield Year Ago % %
