Simon Company's year-end balance sheets follow.
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31, 600 $ 34, 400 $ 36,500 Accounts receivable, net 89,300 64, 200 57, 400 Merchandise inventory 7, 762 84, 300 55, 200 Prepaid expenses 10, 241 10, 187 3,594 Plant assets, net 411, 097 296, 913 177, 306 Total assets $550, 090 $490, 000 $330, 090 Liabilities and Equity Accounts payable $139, 689 $ 85, 294 $ 43,560 Long-term notes payable secured by mortgages on plant assets 104, 434 111, 573 70, 742 Common stock, $10 par value 162, 500 162 , 500 162,500 Retained earnings 143, 377 130, 633 53, 198 Total liabilities and equity $550, 090 $490, 000 $330, 090 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $715 , 090 $ 583, 100 Cost of goods sold $436, 150 $379, 015 Other operating expenses 221, 650 147,524 Interest expense 12, 155 13, 411 Income tax expense 9, 295 8, 747 Total costs and expenses 679, 250 548, 697 Net income $ 35, 750 $ 34, 403 Earnings per share $ 2.20 $ 2. 12Additional information about the company follows. Common stock market price, December 31J Current Year $25.93 Common stock market price, December 31J 1 Year Ago 26.66 Annual. cash dividends per share in Current Year 3.26 Annual. cash dividends per share 1 Year Ago 3.16 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. 23. Assuming Simon's competitor has a price-earnings ratio of 8. which company has higher market expectations for future growth? 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: E Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago: Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: 1 Choose Denominator: Price-Earnings Ratio Price-earnings ratio Current Year: S 1 Year Ago:Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth?Required 1 Required 2 Required 2a Required 3 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 E %