Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,300 $ 34,200 $ 37,000 Accounts receivable, net 89,000 62,400 56,100 Merchandise inventory 94,682 82,500 56,000 Prepaid expenses 10,650 10,084 3,376 Plant assets, net 329,368 300,816 157,524 Total assets $ 555,000 $ 490,000 $ 310,000 Liabilities and Equity Accounts payable $ 136,813 $ 81,154 $ 41,738 Long-term notes payable secured by mortgages on plant assets 101,210 112,700 70,565 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 154,477 133,646 35,197 Total liabilities and equity $ 555,000 $ 490,000 $ 310,000

The companys income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 721,500 $ 583,100 Cost of goods sold $ 440,115 $ 379,015 Other operating expenses 223,665 147,524 Interest expense 12,266 13,411 Income tax expense 9,380 8,747 Total costs and expenses 685,426 548,697 Net income $ 36,074 $ 34,403 Earnings per share $ 2.22 $ 2.12

Additional information about the company follows. Common stock market price, December 31, Current Year $ 30.00 Common stock market price, December 31, 1 Year Ago 28.00 Annual cash dividends per share in Current Year 0.34 Annual cash dividends per share 1 Year Ago 0.17

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 7, which company has higher market expectations for future growth?

3. Dividend yield.

Compute the return on common stockholders' equity for each year.

Return On Common Stockholders Equity
	Choose Numerator:			/	Choose Denominator:	=	Return On Common Stockholders Equity
	Net income		Preferred dividends	/	Average common stockholders equity	=	Return on common stockholders equity
Current Year:	$36,074			/		=	0	%
1 Year Ago:	$34,403			/		=	0	%

Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.)

Price-Earnings Ratio
	Choose Numerator:	/	Choose Denominator:	=	Price-Earnings Ratio
	Market price per common share	/	Earnings per share	=	Price-earnings ratio
Current Year:		/		=	0
1 Year Ago:		/		=	0

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?

Compute the dividend yield for each year. (Round your answers to 2 decimal places.)

Dividend Yield
	Choose Numerator:	/	Choose Denominator:	=	Dividend Yield
	Annual cash dividends per share	/	Market price per share	=	Dividend yield
Current Year:		/		=	0	%
1 Year Ago		/		=	0	%

PLEASE HELP ME WITH THIS QUESTION, IT ON THE EXAM.