Q5.3

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School

Liberty University *

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Course

212

Subject

Finance

Date

Apr 3, 2024

Type

pdf

Pages

1

Uploaded by SargentRhinoceros3522

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Homework: Financial Statement Analysis Assignment €} 5 Part 2 of 2 1.79/2 points awarded Scored eBook Hint Print References ' Required information 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 $ 32.00 30.00 0.38 .19 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. P Submitted 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 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Simon Company < Required 3A Explanation 1 Return on common stockholders' equity Current Year: $39,364 / (($345,867 + $313,509) / 2) = 11.9% 1 Year Ago: $36,652 / (($313,509 + $292,754) / 2) = 12.1% 2, Dividend yield Current Year: $0.38 / $32.00 = 1.2% 1 Year Ago: $0.19 / $30.00 = 0.6% 3. Price-earnings ratio Current Year: $32.00/ $2.42 =13.2 1 Year Ago: $30.00/$2.26 =13.3 Required 3B > 36.96/38 Total points awarded Help Exit Explanation Show my answers a
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