Additional information about the company follows.Common stock market price, December 31, Current YearCommon stock market price, December 31, 1 Year AgoAnnual cash dividends per share in Current YearAnnual cash dividends per share 1 Year AgoFor 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 31.3b. Assuming Simon's competitor has a price-earnings ratio of 6, 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 3BCompute the return on equity for each year.Current Year:1 Year Ago:Numerator:$ 32.0030.000.280.14Preferred dividends1111Return On EquityDenominator:II===Return On EquityReturn on equity0 %%O Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityInterest expenseIncome tax expenseTotal costs and expensesNet incomeCurrent Year$ 35,467102,794127,92511,888335,329$ 613,403For both the current year and one year ago, compute the following ratios:ه له مه له :. .: لهThe company's income statements for the Current Year and 1 Year Ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$ 149,683117,626162,500183,594$ 613,403$ 486,429247,201Current Year13,55610,367Vanu$ 797,424Earnings per shareAdditional information about the company follows.Common stock market price, December 31, Current YearCommon stock market price, December 31, 1 Year AgoAnnual cash dividends per share in Current YearAmmin11 Year Ago 2 Years Ago$ 42,30474,03195,87111,327305,263$ 528,796757, 553$ 39,871$ 2.45$ 88,473125,272162,500152, 551$ 528,796$ 409,024159, 20514,4739,439$ 43,19457,592$ 32.0030.000.281163, 1944,751267,569$ 436,3001 Year Ago$ 57,01694,494163,500121,290$ 436,300$ 629,267592,141$ 37, 126$ 2.28

Return on Equity = Net Income - Preferred DividendAverage Common Shareholder's Equity Price…

Answered: For both the current year and one year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Please correct answer and don't use hand rating
Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.’s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 5,715 4,500 Operating costs except depreciation and amortization 1,365 1,268 Depreciation and…
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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. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth?