Refer to Sexton Company’s financial information in Exercises 13-6 and 13-8. Additional information about the company follows. To help evaluate the company’s profitability, compute and interpret the following ratios for 2006 and 2005: (1) return on common stockholders’ equity, (2) price-earnings ratio on December 31, and (3) dividend yield.

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Common stock market price, December 31, 2006 Common stock market price, December 31, 2005 Annual cash dividends per share in 2006 Annual cash dividends per share in 2005 $15.00 14.00 0.30 0.15