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…

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?

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?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
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