Question

Simon Company’s year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	31,600		$	34,600		$	36,000
Accounts receivable, net		89,200			64,400			55,700
Merchandise inventory		68,818			84,700			50,700
Prepaid expenses		10,613			9,438			3,852
Plant assets, net		369,769			251,862			193,748
Total assets	$	570,000		$	445,000		$	340,000
Liabilities and Equity
Accounts payable	$	140,511		$	73,701		$	44,880
Long-term notes payable secured by mortgages on plant assets		109,303			104,397			74,389
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		157,686			104,402			58,231
Total liabilities and equity	$	570,000		$	445,000		$	340,000
The company’s income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $ 741,000 $ 529,550 Cost of goods sold $ 452,010 $ 344,208 Other operating expenses 229,710 133,976 Interest expense 12,597 12,180 Income taxes 9,633 7,943 Total costs and expenses 703,950 498,307 Net income $ 37,050 $ 31,243 Earnings per share $ 2.28 $ 1.92

1. Return on common stockholders' equity.
2. Price-earnings ratio on December 31.
3. Dividend yield.

Answer 1

Calculate following :

	Formula	2017	2016
Return on Common Stockholder's equity	Net income/Average common Stockholder's equity	37050/293544 = 12.62%	31243/243816.50 = 12.81%
Price earning ratio	MPS/EPS
Dividend yield	DPS/MPS

Note : MPS and DPS is not given in question