Question

Hello, I'm stuck on how to solve for this assignment.

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,600 88,900 8,088 10,910 440,502 $580,000 $ 35,000 $ 36,200 62,400 51,400 83,100 57,300 9,9794 ,070 289,521 221,030 $480,000 $370,000 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 $ 148,753 $ 80,309 $ 48,840 105,769 162,500 162,978 $580,000 108,192 80,952 162,500 162,500 128,999 77,708 $480,000 $370,000 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 1 Yr Ago $ 571,200 $371,280 144,514 13,138 8,568 537,500 $ 33,700 Earnings per share $ 2.32 $ 2.07

Answer 1

Ans.1	Return on common stockholder's equity = (Net income - Preference dividend) / Average common stockholder's equity * 100
	current year		(37700 - 0) / 308488.50 * 100 = 12.22% or 12.2%
	1 year ago		(33700 - 0) / 265,853.50 * 100 = 12.68% or 12.7%
	Average common stockholder's equity = (Beginning common stockholder's equity + Ending common stockholder's equity) / 2
Ans.2	Price Earning Ratio   =   Market price per share / Earning per share
	current year		32 / 2.32 =  13.79
	one year ago		30 / 2.07 =  14.49
Ans.3	Dividend Yield   =   Dividend per share / Market price per share * 100
	current year		0.24 / 32 * 100 0.75%
	one year ago		0.12 / 30 * 100   0.40%