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 Current Year 1 Year Ago 2 Years Ago $ 40,292 73,418 $ 35,891 101,963 132,084 11,787 320,571 $ 602,296 94,135 11,122 300,254 $ 519,221 $ 86,871 120,615 $ 146,972 Long-term notes payable Common stock, $10 par value Retained earnings 110,967 162,500 181,857 163,500 148,235 Total liabilities and equity $ 602,296 $ 519,221 $ 42,416 57,114 61,441 4,573 258,656 $ 424,200 $ 54,315 94,686 163,500 111,699 $ 424,200 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 Earnings per share Current Year $ 782,985 $ 477,621 242,725 13,311 10,179 743,836 1 Year Ago $ 617,873 $ 401,617 156,322 14,211 9,268 581,418 $ 36,455 $ 2.24 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 $ 39,149 $ 2.41 $ 31.00 29.00 0.24 0.12 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 6, 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 3B Compute the return on equity for each year. Return On Equity Numerator: Denominator: = Return On Equity Net income End of year common stockholders' equity = Return on equity Current Year: $ 39,149/ = 0 % 1 Year Ago: $ 36,455/ = 0 % < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Numerator: I Denominator: = Dividend Yield Annual cash dividends per share 7 Market price per share = Dividend yield = 0% Current Year: 1 Year Ago 0% < Required 1 Required 3A > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Numerator: Market price per common share Denominator: Earnings per share Current Year: 1 Year Ago: 1 < Required 2 Required 3B > Price-Earnings Ratio = Price-earnings ratio = 0 = 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B 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 3A Required 3B >