Simon Companys 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		88,200			64,400			57,400
Merchandise inventory		87,420			84,400			51,000
Prepaid expenses		10,368			8,732			4,204
Plant assets, net		317,412			228,068			240,896
Total assets	$	535,000		$	420,000		$	390,000
Liabilities and Equity
Accounts payable	$	134,547		$	69,560		$	50,965
Long-term notes payable secured by mortgages on plant assets		98,568			95,634			87,052
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		139,385			92,306			89,483
Total liabilities and equity	$	535,000		$	420,000		$	390,000

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					$	499,800
Cost of goods sold	$	424,255					$	324,870
Other operating expenses		215,605						126,449
Interest expense		11,824						11,495
Income tax expense		9,042						7,497
Total costs and expenses					660,726						470,311
Net income				$	34,774					$	29,489
Earnings per share				$	2.14					$	1.81

Additional information about the company follows.

Common stock market price, December 31, Current Year	$	28.00
Common stock market price, December 31, 1 Year Ago		26.00
Annual cash dividends per share in Current Year		0.32
Annual cash dividends per share 1 Year Ago		0.16

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. 2a. Assuming Simon's competitor has a price-earnings ratio of 6, 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 Return on common stockholders' equity Current Year: 1 Year Ago: Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Denominator: Choose Numerator: = Price Earnings Ratio Price-earnings ratio Current Year: 1 Year Ago: 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? Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Choose Numerator: Dividend Yield 1 Choose Denominator: = Dividend Yield Dividend yield Current Year: 1 Year Ago !!