5. Simon Company's year-end balance sheets follow. [The following information applies to the questions displayed below.]

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 34,302	$ 40,096	$ 42,193
Accounts receivable, net	99,419	72,295	56,258
Merchandise inventory	130,051	90,850	62,965
Prepaid expenses	11,270	10,738	4,688
Plant assets, net	312,229	292,289	264,396
Total assets	$ 587,271	$ 506,268	$ 430,500
Liabilities and Equity
Accounts payable	$ 150,617	$ 85,559	$ 58,531
Long-term notes payable	109,303	118,770	97,995
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	164,851	139,439	111,474
Total liabilities and equity	$ 587,271	$ 506,268	$ 430,500

For both the current year and one year ago, compute the following ratios:

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 763,452		$ 602,459
Cost of goods sold	$ 465,706		$ 391,598
Other operating expenses	236,670		152,422
Interest expense	12,979		13,857
Income tax expense	9,925		9,037
Total costs and expenses		725,280		566,914
Net income		$ 38,172		$ 35,545
Earnings per share		$ 2.35		$ 2.19

Additional information about the company follows.

Common stock market price, December 31, Current Year	$ 33.00
Common stock market price, December 31, 1 Year Ago	31.00
Annual cash dividends per share in Current Year	0.38
Annual cash dividends per share 1 Year Ago	0.19

For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth?

For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Return On Equity Numerator: Denominator: Return On Equity Return on equity Preferred dividends 1 Current Year: / % 1 Year Ago: 1 % Required 1 Required 2 > For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield 1 Numerator: Denominator: = Dividend Yield Dividend yield / Current Year: 1 % 1 Year Ago / % For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Denominator: Numerator: = Price-Earnings Ratio Price-earnings ratio 7 - Current Year: / 1 Year Ago: - For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth?