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 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $ 32,000 $ 34,900 $ 36,900 89,480 64,200 57,800 36,827 10,800 410,973 82,600 57,500 10,274 3,308 283,026 154,492 $580,000 $475,000 $310,000 $144,420 $ 81,078 $ 40,920 109,040 111,435 68,510 162,500 162,500 162,500 164,040 119,987 38,070 $580,000 $475,000 $310,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Current Yr $754,000 1 Yr Ago $565,250 Cost of goods sold $459,940 $367,413 Other operating expenses 233,740 Interest expense 12,818 Income tax expense 9,802 143,008 13,001 8,479 Total costs and expenses 716,300 Net income $37,700 Earnings per share $ 2.32 531,901 $ 33,349 2.05 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 $29.00 27.08 0.28 0.14 For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? 3. Dividend yield. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Current Year: 1 Year Ago: Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity C Required 1 Required 2 > % % Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago: Price-Earnings Ratio Choose Numerator: Choose Denominator: Price-Earnings Ratio Price-earnings ratio Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago Choose Numerator: Dividend Yield Choose Denominator