Please do not give solution in image format thanku Complete this question by entering your answers in the tabs below.Required 1 Required 2Current Year1 Year AgoCompute the return on common stockholders' equity for each year.Required 3Current Year:1 Year Ago:Required 3aChoose Numerator:Required 1 Required 2 Required 3 Required 3aReturn On Common Stockholders' Equity.Choose Denominator:Compute the dividend yield for each year.Note: Round your answers to 2 decimal places.Complete this question by entering your answers in the tabs below.Choose Numerator:Current Year:1 Year Ago:Choose Numerator:Dividend YieldCompute the price-earnings ratio for each year.Note: Round your answers to 2 decimal places.11< Required 1Required 1 Required 2 Required 3 Required 3a< Required 1/Choose Denominator:Complete this question by entering your answers in the tabs below.1/111Price-Earnings RatioRequired 3 Required 3a< Required 2/Choose Denominator:Required 3 >Complete this question by entering your answers in the tabs below.Required 2 >===Required 3a >=Competitor CompanySimon CompanyDividend YieldDividend yield%%Price-Earnings RatioPrice-earnings ratioRequired 1 Required 2Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for futuregrowth?Which company has higher market expectations for future growth?< Required 3Return On CommonStockholders' EquityReturn on commonstockholders' equity%% 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, $10 par valueRetained earningsTotal liabilities and equityCurrent YearFor Year Ended December 31SalesCost of goods soldOther operating expenses$ 31,80089,500112,50010,700278,500$ 523,000$ 129,90098,500163,500131,100$ 523,0001 Year AgoCurrent Year$ 411,225209,55012,1009,525$ 35,62562,50082,5009,375255,000$ 445,000$75,250101,500163,500104,750$ 445,000The company's income statements for the current year and 1 year ago, follow.$ 673,5002 Years Ago$ 37,80050,20054,0005,000230,500$ 377,500642,400$ 31,100$ 1.90$ 51,25083,500163,50079,250$ 377,500Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per share.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 common stockholders' equity.2. Dividend yield.1 Year Ago$ 345,500134,98013,3008,845$30.0028.000.290.24$ 532,000502,625$ 29,375$ 1.803. Price-earnings ratio on December 31.3a. Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for future growth?

The business entities or lenders determine financial ratios to compare different companies' outcomes…

Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses 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 Current Year For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 $ 523,000 1 Year Ago $ 35,625 62,500 82,500 Current Year $ 411,225 209,550 12,100 9,525 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 The company's income statements for the current year and 1 year ago, follow. $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500 134,980 13,300 8,845 $ 532,000 $ 30.00 28.00 0.29 0.24 502,625 $ 29,375 $ 1.80 Earnings per share 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 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Dividend yield. 3. Price-earnings ratio on December 31. 3a. Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for future growth?

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 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...