Required information Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 29,661 $ 35,025 $ 35,053 Accounts receivable, net 87,721 63,151 47,692 Merchandise inventory 108,087 81,813 52,331 Prepaid expenses 9,552 9,287 3,974 Plant assets, net 277,967 252,955 222,250 Total assets $ 512,988 $ 442,231 $ 361,300 Liabilities and Equity Accounts payable $ 123,902 $ 75,484 $ 48,169 Long-term notes payable 95,477 103,747 81,444 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 131,109 100,500 69,187 Total liabilities and equity $ 512,988 $ 442,231 $ 361,300 The companys income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 666,884 $ 526,255 Cost of goods sold $ 406,799 $ 342,066 Other operating expenses 206,734 133,143 Interest expense 11,337 12,104 Income tax expense 8,669 7,894 Total costs and expenses 633,539 495,207 Net income $ 33,345 $ 31,048 Earnings per share $ 2.05 $ 1.91 Additional information about the company follows. Common stock market price, December 31, Current Year $ 31.00 Common stock market price, December 31, 1 Year Ago 29.00 Annual cash dividends per share in Current Year 0.32 Annual cash dividends per share 1 Year Ago 0.16 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 6, which company has higher market expectations for future growth?