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 $ 37,328 111,434 138,747 11,901 333,270 $ 632,680 $ 44,069 77,122 100,902 11,454 311,867 $ 545,414 $ 92,175 125,445 162,500 165,294 Long-term notes payable Common stock, $10 par value Retained earnings $ 160,688 117,754 163,500 190,738 Total liabilities and equity $ 632,680 $ 545,414 For both the current year and one year ago, compute the following ratios: $ 44,556 58,819 64,541 4,951 272,733 $ 445,600 $ 59,407 100,447 162,500 123,246 $ 445,600 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 Income tax expense Other operating expenses Total costs and expenses Net income Earnings per share Current Year $ 822,484 $ 501,715 254,970 13,982 10,692 1 Year Ago $ 649,043 781,359 $ 41,125 $ 2.53 $ 421,878 164,208 14,928 9,736 610,750 $ 38,293 $ 2.36 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 0.24 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 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. Return On Equity Current Year: 1 Year Ago: Numerator: Denominator: Return On Equity Return on equity % % Required Required 2 > Required 1 Required 2 Required 3A Required 3B Required 3A Compute the dividend yield for each you your answers to 2 decimal places.) Current Year: 1 Year Ago Numerator: Dividend Yield Denominator: < Required 1 Required 3A > Dividend Yield Dividend yield % % Required 1 Required 2 Required A Required 3B Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago: Numerator: Price-Earnings Ratio Denominator: Price-Earnings Ratio = Price-earnings ratio: = < Required 2 Required 3B > ences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 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 3A equired 38