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 7, which company has higher market expectations for future growth? 3. Dividend yield.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,700 $ 34,100 $ 36,500 89,400 62,100 59,100 64,970 83,600 58,000 10,800 10,290 3,703 383, 130 299,910 182,697 $ 580,000 $490,000 $ 340,000 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $141,532 $ 81,154 $ 46,226 110,130 111,573 75,891 162,500 162,500 162,500 165,838 134,773 55,383 $ 580,000 $490,000 $340,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $754,000 $459,940 233,740 12,818 9,802 716,300 $ 37,700 $ 2.32 1 Yr Ago $ 583,100 $379,015 147,524 13,411 8,747 548,697 $ 34,403 $ 2.12 Earnings per share For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $754,000 $459,940 233,740 12,818 9,802 716,300 $ 37,700 $ 2.32 1 Yr Ago $ 583, 100 $379,015 147,524 13,411 8,747 548, 697 $ 34,403 $ 2.12 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 $ 33.00 31.00 0.28 0.14 Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: 1. Choose Denominator: Preferred dividends 1 Average common stockholders' equity 37,700 / Return On Common Stockholders' Equity Return on common stockholders' equity 0 % Net income 11 $ 11 Current Year: 1 Year Ago: !! 09 Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: 1 Choose Denominator: Market price per common share 1 Earnings per share 1 Price-Earnings Ratio Price-earnings ratio > I! 0 Current Year: 1 Year Ago: / 0 Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield 1 Choose Denominator: 1 Market price per share Choose Numerator: Annual cash dividends per share = !! Dividend Yield Dividend yield 0 % 1 11 Current Year: 1 Year Ago 11 0 %