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Help Seve & Exit Submit Simon Companys year-end balance sheets follow 10 31,600 $ 34,600 $ 36,000 55,700 68,818 84,700 50,700 3,852 64,480 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 10,613 369,769 9,438 251, $570,000 $445,e00 340,000 $140,511 $ 73,701 44,880 ages on plant assets Common stock, $1e par value 109,303 104,397 74,389 162,500 162,50e 162,500 157, 686 184,482 58,231 Total liabilities and equity $570, 000 $445,000 340,00e The companys income statements for the years ended December 31, 2017 and 2016, follow. 2017 2016 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes $741,000 529,550 452,010 229,710 12,597 9,633 344,208 133,976 12,180 7,943 1 of 1 Next

s income statements for the years ended December 31, 2017 and 2016, follow Cost of goods sold Other operating expenses Interest expense 452,819 $344,208 133,976 12,180 7,943 10 12,597 Total costs and expenses Net income 703,956 37,058 $ 2.28 $31,243 $1.92 Additional information about the company follows. $ 31.00 29.00 Common stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 2016 To help evaluate the companys profitability, compute the following ratios for 2017 and 2016: 1. Return on common stockholders equity 2. Price-earnings ratio on December 31 3. Dividend yield Prey 1 ofNext O Type here to search

and 2016 3. Dividend yield. to search 1/21/

in the tabs below Required 1 Required 2 Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price Farnings Ratio Nu tor: Choose Denominator: ngs ratio 2017 2016 Required 1 Required 3> Prey 1 of 1 Next

ed Required 1 Required 2 Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) d Yield Nu Dividend Yield yield 2016 Required 2 Prev 1of 1 Next

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Answer #1
Return on Common Stockholderequity
year Choose Numerator / Choose Denominator = Return on Equity
Earning per Share / stock market price = Return on Equity
2017 2.28 / 31 = 7.35%
2016 1.92 / 29 = 6.62%
Price Earning Ratio
year Choose Numerator / Choose Denominator = Price Earning Ratio
stock market price / Earning per Share = Price Earning Ratio
2017 31 / 2.28 =                        13.60
2016 29 / 1.92 =                        15.10
Dividend Yield
year Choose Numerator / Choose Denominator = Dividend Yield
Cash Dividend Per Share / Earning per Share = Dividend Yield
2017 0.34 / 2.28 = 14.91%
2016 0.17 / 1.92 = 8.85%
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