r O Part 6 of 6 1.7 points [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Year 1 Year Ago 2 Years Ago $ 28,101 81,446 $ 33,180 $ 34,555 58,645 46,074 49,078 eBook Hint Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 104,472 9,232 257,854 $ 481,105 $ 118,597 93,161 162,500 106,847 74,426 8,535 239,960 $414,746 $ 67,989 96,345 162,500 87,912 $ 481,105 $ 414,746 3,764 208,729 $ 342,200 $ 46,074 75,626 162,500 58,000 $ 342,200 For both the current year and one year ago, compute the following ratios: Print References The company's income statements for the Current Year and 1 Year Ago, follow. Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share For Year Ended December 31 Sales Cost of goods sold Interest expense Current Year 1 Year Ago $ 625,437 $ 493,548 $ 381,517 193,885 10,632 8,131 594,165 $ 31,272 $ 320,806 124,868 11,352 7,403 464,429 $ 29,119 $ 1.92 $ 1.79 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 0.26 0.13 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Check my work
r O Part 6 of 6 1.7 points [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Year 1 Year Ago 2 Years Ago $ 28,101 81,446 $ 33,180 $ 34,555 58,645 46,074 49,078 eBook Hint Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 104,472 9,232 257,854 $ 481,105 $ 118,597 93,161 162,500 106,847 74,426 8,535 239,960 $414,746 $ 67,989 96,345 162,500 87,912 $ 481,105 $ 414,746 3,764 208,729 $ 342,200 $ 46,074 75,626 162,500 58,000 $ 342,200 For both the current year and one year ago, compute the following ratios: Print References The company's income statements for the Current Year and 1 Year Ago, follow. Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share For Year Ended December 31 Sales Cost of goods sold Interest expense Current Year 1 Year Ago $ 625,437 $ 493,548 $ 381,517 193,885 10,632 8,131 594,165 $ 31,272 $ 320,806 124,868 11,352 7,403 464,429 $ 29,119 $ 1.92 $ 1.79 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 0.26 0.13 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Check my work
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![r
O
Part 6 of 6
1.7
points
[The following information applies to the questions displayed below]
Simon Company's year-end balance sheets follow.
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Current Year 1 Year Ago 2 Years Ago
$ 28,101
81,446
$ 33,180
$ 34,555
58,645
46,074
49,078
eBook
Hint
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
104,472
9,232
257,854
$ 481,105
$ 118,597
93,161
162,500
106,847
74,426
8,535
239,960
$414,746
$ 67,989
96,345
162,500
87,912
$ 481,105
$ 414,746
3,764
208,729
$ 342,200
$ 46,074
75,626
162,500
58,000
$ 342,200
For both the current year and one year ago, compute the following ratios:
Print
References
The company's income statements for the Current Year and 1 Year Ago, follow.
Other operating expenses
Income tax expense
Total costs and expenses
Net income
Earnings per share
For Year Ended December 31
Sales
Cost of goods sold
Interest expense
Current Year
1 Year Ago
$ 625,437
$ 493,548
$ 381,517
193,885
10,632
8,131
594,165
$ 31,272
$ 320,806
124,868
11,352
7,403
464,429
$ 29,119
$ 1.92
$ 1.79
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
0.26
0.13
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3A
Required 3B
Compute the return on equity for each year.
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F265d30ab-2692-467b-b1d5-ef312d1998e3%2F2c4e9290-e9be-49df-b399-6d59e58bed77%2Ff115rl2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:r
O
Part 6 of 6
1.7
points
[The following information applies to the questions displayed below]
Simon Company's year-end balance sheets follow.
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Current Year 1 Year Ago 2 Years Ago
$ 28,101
81,446
$ 33,180
$ 34,555
58,645
46,074
49,078
eBook
Hint
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
104,472
9,232
257,854
$ 481,105
$ 118,597
93,161
162,500
106,847
74,426
8,535
239,960
$414,746
$ 67,989
96,345
162,500
87,912
$ 481,105
$ 414,746
3,764
208,729
$ 342,200
$ 46,074
75,626
162,500
58,000
$ 342,200
For both the current year and one year ago, compute the following ratios:
Print
References
The company's income statements for the Current Year and 1 Year Ago, follow.
Other operating expenses
Income tax expense
Total costs and expenses
Net income
Earnings per share
For Year Ended December 31
Sales
Cost of goods sold
Interest expense
Current Year
1 Year Ago
$ 625,437
$ 493,548
$ 381,517
193,885
10,632
8,131
594,165
$ 31,272
$ 320,806
124,868
11,352
7,403
464,429
$ 29,119
$ 1.92
$ 1.79
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
0.26
0.13
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3A
Required 3B
Compute the return on equity for each year.
Check my work
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