Answer Happy

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,000 $ 34,900 $ 36,900 89,400 64,200 57,800 Accounts receivable, net Merchandise inventory Prepaid expenses 36,827 82,600 57,500 10,800 10,274 3,308 418,973 283,026 154,492 Plant assets, net Total assets $580,000 $475,000 $310,000 Liabilities and Equity Accounts payable $144,420 $ 81,078 $ 40,920 Long-term notes payable secured by mortgages on plant assets Common stock, s10 par value 109,040 111,435 68,510 162,500 162,500 162,500 164,040 119.987 38,070 Retained earnings Total liabilities and equity $580,000 $475,000 $310,000 The company's income statements for the Current Year and 1 Year Ago, follow. Current Yr 1 Yr Ago For Year Ended December 31 Sales $754,000 $565,250 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses 716,300 531,901 Net income $ 37,700 $ 33,349 Earnings per share $ 2.32 2.05 Additional information about the company follows. Common stock market price, December 31, Current $29.00 Year 27.00 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 0.28 0.14 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 growth? 3. Dividend yield. $459,940 233,740 12,818 9,882 $367,413 143,008 13,001 8,479
Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Denominator: Choose Numerator: Current Year: 1 Year Ago: C Required 1 Return On Common Stockholders' Equity Return on common stockholders equity % % Required 2 >
Required 1 Required 2 Required 2a Compute the price-earnings places.) Choose Numerator: Current Year: 1 Year Ago: Required 3 ratio for each year. (Round your answers to 2 decimal Price-Earnings Ratio Choose Denominator: Price-Earnings Ratio 1 Price-earnings ratio 1 1 < Required 1 Required 2a >
Required 1 Required 2 Required 2a 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? < Required 2 Required 3 >
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: Dividend Yield Dividend yield Current Year: 1 Year Ago < Required 2a