Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 590,000 Long-term notes payable Common stock, $10 par value Retained earnings $ 151,317 113,138 162,500 163,045 Total liabilities and equity $ 590,000 Current Year 1 Year Ago 2 Years Ago $ 34,600 64,200 $ 31,200 88,800 107,967 10,986 351,047 83,400 9,044 243,756 $ 435,000 $ 74,250 97,048 162,500 101,202 $ 36,900 59,500 53,400 3,342 156,858 $ 310,000 $ 41,329 67,140 162,500 39,031 $ 310,000 $ 435,000 1 Year Ago $ 517,650 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 Current Year $ 767,000 $ 467,870 237,770 13,039 9,971 Total costs and expenses Net income Earnings per share 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 728,650 $ 38,350 $ 2.36 $ 336,473 130,965 11,906 7,765 $ 31.00 29.00 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Dividend yield. 3. Price-earnings ratio on December 31. 0.26 0.13 487,109 $ 30,541 $ 1.88 3a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Compute the return on common stockholders' equity for each year. Current Year: 1 Year Ago: Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: < Required 1 Required 2 > Return On Common Stockholders' Equity Return on common stockholders' equity % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago Choose Numerator: Dividend Yield Choose Denominator: Dividend Yield Dividend yield % % < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Compute the price-earnings ratio for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Choose Numerator: Price-Earnings Ratio 1 Choose Denominator: < Required 2 Required 3a > = Price-Earnings Ratio Price-earnings ratio Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3a Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? < Required 3 Required 3a >