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

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

Assets

Cash $ $33,232$ $ $39,242$ $ $41,286$

Accounts receivable, net $98,28369,36756,138$

Merchandise inventory $123,57391,66458,045$

Prepaid expenses $11,13910,3014,587$

Plant assets, net $308,530284,906252,844$

Total assets $ $574,757$ $ $495,480$ $ $412,900$

Liabilities and Equity

Accounts payable $ $145,977$ $ $85,411$ $ $55,048$

Long$-$term notes payable $105,893115,10093,076$

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

Retained earnings $160,387132,469101,276$

Total liabilities and equity $ $574,757$ $ $495,480$ $ $412,900$

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

Exercise $13-11($Algo$)$ Analyzing profitability LO P$3$

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 $ $747,184$ $ $589,621$

Cost of goods sold $ $455,782$ $ $383,254$

Other operating expenses $231,627149,174$

Interest expense $12,70213,561$

Income tax expense $9,7138,844$

Total costs and expenses $709,824554,833$

Net income $ $37,360$ $ $34,788$

Earnings per share $ $2\mathrm{.}30$ $ $2\mathrm{.}14$

Additional information about the company follows.

Common stock market price, December $31,$ Current Year $ $29\mathrm{.}00$

Common stock market price, December $31,1$ Year Ago $27\mathrm{.}00$

Annual cash dividends per share in Current Year $0\mathrm{.}40$

Annual cash dividends per share $1$ Year Ago $0\mathrm{.}20$

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 $8,$ which company has higher market expectations for future growth?