Simon Company\'s year-end balance sheets follow. At December 31 Assets Cash Acco

Question

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 secured by 2817 2816 2815 $31,28e 34,48 36,99e 51,39e 51, 59e 3,594 401.715 275,337 186,796 $58e,e9e $465,e0 338,890 88,79 63, 308 47,475 82,18e 18,918 9,863 $141,532 $ 77,799 $43,996 mortgages on plant assets Common stock, $18 par value Retained earnings Total liabilities and equity 111,221 184,811 72,281 162,599 162,59e162,59e 164,747 1 98 51,202 $58e,e9e $465,e0 336,800 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2817 2816 $754,8ee $553,350 $459,94e 233,748 12,818 9,802 $359,678 139,998 12,727 8,30e 716,30e $37,79 $2.32 520.783 $32, 647 $2.81 Earni ngs per share Additional information about the company follows. Common stock market price, December 31, 2817 Common stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 2816 $ 31.8e 29.80 8.26 8.13

Explanation / Answer

a) Return on Common Shareholder Equity Numerator Denominator Return on Common Shareholder Equity 2017 $37,700.00 - $0.00 / $304,818.50 = 12.37% 2016 $32,647.00 - $0.00 / $248,096.50 = 13.16% Denominator = Average Shareholders' equity Shareholder equity = Common stock + retained earnings Common stock + Retained Earnings = Shareholder equity 2017 $162,500.00 + $164,747.00 = $327,247.00 2016 $162,500.00 + $119,890.00 = $282,390.00 2015 $162,500.00 + $51,303.00 = $213,803.00 c) Dividend Yield Numerator Annual dividend per share Denominator ( Market price) Dividend yield 2017 $0.26 / $31.00 = 0.84% 2016 $0.13 / $29.00 = 0.45%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.