Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago $ 392,800 Cash $ 31,605 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 90,694 $ 36,578 65,291 $ 38,498 52,887 116,311 10,077 281,687 $ 530,374 82,048 54,104 9,890 263,412 $ 457,219 4,234 243,077 $ 134,704 Long-term notes payable Common stock, $10 par value Retained earnings 99,710 162,500 133,460 Total liabilities and equity $ 530,374 $ 457,219 $ 78,815 106,212 163,500 108,692 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 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income Current Year $689,486 $ 420,586 213,741 11,721 8,963 655,011 $ 34,475 $ 2.12 $51,331 85,073 162,500 93,896 $ 392,800 1 Year Ago: $ 544,091 $ 353,659 137,655 12,514 8,161 511,989 $ 32,102 $ 1.98 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: $ 31.00 29.00 0.38 0.19 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. 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 3A Required 38 Compute the return on equity for each year. Current Year: 1 Year Ago: Numerator: Preferred dividends. Return On Equity Denominator: Return On Equity Return on equity % % 1