Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Retained earnings $ 154,918 116,967 Common stock, $10 par value 163,500 174,578 $ 35,988 102,218 128,519 11,821 331,417 $ 609,963 $ 41,646 72,880 100,197 10,932 300,175 $ 525,830 $ 87,977 124,569 162,500 150,784 $ 43,806 57,841 61,003 4,631 262,319 $ 429,600 $ 56,140 93,043 162,500 117,917 Total liabilities and equity $ 609,963 $ 525,830 $ 429,600 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 Earnings per share Current Year $ 483,701 245,815 13,480 10,308 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 $ 792,952 753,304 $ 39,648 $ 2.44 1 Year Ago $ 406,730 158,312 14,392 9,386 $ 31.00 29.00 0.32 0.16 $ 625,738 588,820 $ 36,918 $ 2.27 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' 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? Required 1 Required 2 Required 3A Required 3B Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity. Numerator: Denominator: Return On Common Stockholders' Equity Net income Preferred dividends Average common stockholders' equity Return on common = stockholders' equity Current Year: $ 39,648 0 / = 0% 1 Year Ago: 1 0%