Simon Companys year-end balance sheets follow.

At December 31	Current Yr			1 Yr Ago			2 Yrs Ago
Assets
Cash	$	31,500		$	34,000		$	37,300
Accounts receivable, net		88,800			63,600			55,400
Merchandise inventory		34,360			82,600			54,400
Prepaid expenses		10,063			9,574			3,889
Plant assets, net		370,277			280,226			199,011
Total assets	$	535,000		$	470,000		$	350,000
Liabilities and Equity
Accounts payable	$	135,879		$	78,636		$	45,738
Long-term notes payable secured by mortgages on plant assets		98,568			109,181			78,124
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		138,053			119,683			63,638
Total liabilities and equity	$	535,000		$	470,000		$	350,000

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	695,500					$	559,300
Cost of goods sold	$	424,255					$	363,545
Other operating expenses		215,605						141,503
Interest expense		11,824						12,864
Income tax expense		9,042						8,390
Total costs and expenses					660,726						526,302
Net income				$	34,774					$	32,998
Earnings per share				$	2.14					$	2.03

Additional information about the company follows.

Common stock market price, December 31, Current Year	$	29.00
Common stock market price, December 31, 1 Year Ago		27.00
Annual cash dividends per share in Current Year		0.24
Annual cash dividends per share 1 Year Ago		0.12

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.

Return On Common Stockholders' Equity Choose Numerator: 1 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity % 1 Current Year: 1 1 Year Ago: 1 = % Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio / Current Year: / 1 Year Ago: 1 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 / Dividend yield Current Year: / % 1 Year Ago / %