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? Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 28.00 26.00 0.26 0.13 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: 1 Denominator: = Return On Equity Preferred dividends / Return on equity Current Year: - % 1 Year Ago: / = % Required information (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27, 361 76,990 96,800 8,469 240, 611 $ 450, 231 $ 30,119 54,882 73,240 7,906 221,983 $ 388,130 $ 30,765 41,020 45,929 3,558 195,828 $ 317,100 $ 108, 744 85,490 162,500 93,497 $ 450, 231 $ 65,594 91,055 163,500 67,981 $ 388,130 $ 42,694 69,378 162,500 42,528 $ 317,100 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 585,300 $ 357,033 181,443 9,950 7,609 556,035 $ 29,265 $ 1.80 1 Year Ago $ 461,875 $ 300,219 116,854 10,623 6,928 434,624 $ 27, 251 Earnings per share $ 1.68