Additional intormation about the company tollows. 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 0.24 0.12 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 hs 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 Return On Common Choose Numerator: IChoose Denominator: Stockholders' Equity Return on common etockholdere' anihu
Additional intormation about the company tollows. 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 0.24 0.12 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 hs 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 Return On Common Choose Numerator: IChoose Denominator: Stockholders' Equity Return on common etockholdere' anihu
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Additional intormation about the company tollows.
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
0.24
0.12
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
Compute the return on common stockholders' equity for each year.
Return On Common Stockholders' Equity
Return On Common
Stockholders' Equity
Choose Numerator:
IChoose Denominator:
%3D
Return on common
%3D
etockholdere' an itu
< Prev
8 of 8
Next>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed9668c-ad11-440a-82ce-943542bf21f0%2Fa4063d4e-048f-4cf0-a9d1-c75174ed206d%2F8ofefqb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Additional intormation about the company tollows.
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
0.24
0.12
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
Compute the return on common stockholders' equity for each year.
Return On Common Stockholders' Equity
Return On Common
Stockholders' Equity
Choose Numerator:
IChoose Denominator:
%3D
Return on common
%3D
etockholdere' an itu
< Prev
8 of 8
Next>
![At December 31
1 Yr Ago 2 Yrs Ago
Yr
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
৪৪,900
77,748
10,555
340,897
$ 31,900 $ 34,400 $ 36,200
63,100
83,800
51,500
53,100
3,777
195,423
9,193
234,507
Total assets
$550,000 $425,000 $340,000
Liabilities and Equity
Accounts payable
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
$134,211 $ 71,107 $ 45,778
104,434
162,500
148,855
$550,000 $425,000 $ 340,000
94,817
162,500
96,576
75,140
162,500
56,582
Total liabilities and equity
The company's income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31
Sales
1 Yr Ago
$ 505,750
Current Yr
$715,000
Cost of goods sold
other operating expenses
Interest expense
$436,150
221,650
12,155
9,295
$328,738
127,955
11,632
7,586
Income tax expense
Total costs and expenses
475,911
679,250
$ 35,750
Net income
$ 29,839
Earnings per share
$1
2.20
$4
1.84
< Prev
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...
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*.........](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed9668c-ad11-440a-82ce-943542bf21f0%2Fa4063d4e-048f-4cf0-a9d1-c75174ed206d%2F81787uc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:At December 31
1 Yr Ago 2 Yrs Ago
Yr
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
৪৪,900
77,748
10,555
340,897
$ 31,900 $ 34,400 $ 36,200
63,100
83,800
51,500
53,100
3,777
195,423
9,193
234,507
Total assets
$550,000 $425,000 $340,000
Liabilities and Equity
Accounts payable
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
$134,211 $ 71,107 $ 45,778
104,434
162,500
148,855
$550,000 $425,000 $ 340,000
94,817
162,500
96,576
75,140
162,500
56,582
Total liabilities and equity
The company's income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31
Sales
1 Yr Ago
$ 505,750
Current Yr
$715,000
Cost of goods sold
other operating expenses
Interest expense
$436,150
221,650
12,155
9,295
$328,738
127,955
11,632
7,586
Income tax expense
Total costs and expenses
475,911
679,250
$ 35,750
Net income
$ 29,839
Earnings per share
$1
2.20
$4
1.84
< Prev
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...
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*.........
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