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

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

Assets

Cash $ $26,072$ $ $30,777$ $ $31,117$

Accounts receivable, net $75,56452,27640,668$

Merchandise inventory $94,06771,17344,190$

Prepaid expenses $8,0647,7623,389$

Plant assets, net $233,755215,186191,836$

Total assets $ $437,522$ $ $377,174$ $ $311,200$

Liabilities and Equity

Accounts payable $ $106,764$ $ $64,380$ $ $41,900$

Long$-$term notes payable $83,89987,61866,712$

Common stock, $$10$ par value $163,500163,500162,500$

Retained earnings $83,35961,67640,088$

Total liabilities and equity $ $437,522$ $ $377,174$ $ $311,200$

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 $ $568,779$ $ $448,837$

Cost of goods sold $ $346,955$ $ $291,744$

Other operating expenses $176,321113,556$

Interest expense $9,66910,323$

Income tax expense $7,3946,733$

Total costs and expenses $540,339422,356$

Net income $ $28,440$ $ $26,481$

Earnings per share $ $1\mathrm{.}75$ $ $1\mathrm{.}63$

Additional information about the company follows.

Common stock market price, December $31,$ Current Year $ $28\mathrm{.}00$

Common stock market price, December $31,1$ Year Ago $26\mathrm{.}00$

Annual cash dividends per share in Current Year $0\mathrm{.}34$

Annual cash dividends per share $1$ Year Ago $0\mathrm{.}17$

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?