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Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $26,531$ $ $31,952$ $ $33,609$

Accounts receivable, net $76,11755,91543,072$

Merchandise inventory $95,70373,16446,335$

Prepaid expenses $8,7168,0583,589$

Plant assets, net $247,148222,476202,995$

Total assets $ $454,215$ $ $391,565$ $ $329,600$

Liabilities and Equity

Accounts payable $ $109,707$ $ $65,513$ $ $43,942$

Long$-$term notes payable $85,39290,96172,113$

Common stock, $$10$ par value $162,500163,500162,500$

Retained earnings $96,61671,59151,045$

Total liabilities and equity $ $454,215$ $ $391,565$ $ $329,600$

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

The company$$s income statements for the Current Year and $1$ Year Ago, follow.

For Year Ended December $31$ Current Year $1$ Year Ago

Sales $ $590,480$ $ $465,962$

Cost of goods sold $ $360,193$ $ $302,875$

Other operating expenses $183,049117,888$

Interest expense $10,03810,717$

Income tax expense $7,6766,989$

Total costs and expenses $560,956438,469$

Net income $ $29,524$ $ $27,493$

Earnings per share $ $1\mathrm{.}82$ $ $1\mathrm{.}69$

Additional information about the company follows.

Common stock market price, December $31,$ Current Year $ $33\mathrm{.}00$

Common stock market price, December $31,1$ Year Ago $31\mathrm{.}00$

Annual cash dividends per share in Current Year $0\mathrm{.}26$

Annual cash dividends per share $1$ Year Ago $0\mathrm{.}13$

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

$1.$ Return on equity.

$2.$ Dividend yield.

$3$a$.$ Price$-$earnings ratio on December $31.$

$3$b$.$ Assuming Simon's competitor has a price$-$earnings ratio of $7,$ which company has higher market expectations for future growth?