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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 $ 31,200 $ 34,100 $ 37,900 88,600 63,500 51,400 83,735 82,400 51,500 10,830 9,757 3,478 355,635 270,243 165,722 $570,000 $460,000 $ 310, eee $141,930 $ 78,517 $ 41,738 69,195 107,160 107,916 162,500 162,500 162,500 158,410 111, 067 36,567 $570,000 $460,000 $ 310,000 The company's Income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 547,400 $355,810 138, 492 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 $741,000 $452, 010 229,710 12,597 9,633 703,95 $ 37,650 $ 2.28 12,590 8,211 515, 103 $ 32,297 $ 1.99 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 $ 30.00 28.00 0.34 0.17 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Return On Common Stockholders' Equity Choose Numerator: I Choose Denominator: Il Return On Common Stockholders' Equity Return on common stockholders' equity 0 % Net income Preferred dividends Average common stockholders' equity / Current Year: / 1 Year Ago: 1 0 % Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: I Choose Denominator: Price-Earnings Ratio Market price per common share | Earnings per share Price-earnings ratio Current Year: / o o 1 Year Ago: / Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: 1 Choose Denominator: = Dividend Yield Annual cash dividends per share / Market price per share 11 Dividend yield Current Year: / 0 % 1 Year Ago 1 0 %

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