Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 98,500 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Total assets Liabilities and Equity Accounts payable $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Other operating expenses Cost of goods sold Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 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 1 Year Ago $ 532,000 $ 31,100 $ 1.90 $ 345,500 134,980 13,300 8,845 502,625 $ 29,375 642,400 $ 30.00 28.00 0.29 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. 0.24 $ 1.80 3a. Assuming Simon's competitor has a price-earnings ratio of 10, 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 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 / Choose Denominator: Price-Earnings Ratio Price-earnings ratio < Required 2 Required 3a > 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 10, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? < Required 3 Competitor Company Simon Company