Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 30,082 $ 33,456 $ 35,916 Accounts receivable, net 86,339 58,547 48,363 Merchandise inventory 108,555 80,524 49,986 Prepaid expenses 9,217 9,141 3,951 Plant assets, net 260,814 245,062 220,984 Total assets $ 495,007 $ 426,730 $ 359,200 Liabilities and Equity Accounts payable $ 122,024 $ 72,117 $ 47,414 Long-term notes payable 93,992 98,148 79,383 Common stock, $10 par value 162,500 163,500 163,500 Retained earnings 116,491 92,965 68,903 Total liabilities and equity $ 495,007 $ 426,730 $ 359,200

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

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 643,509		$ 507,809
Cost of goods sold	$ 392,540		$ 330,076
Other operating expenses	199,488		128,476
Interest expense	10,940		11,680
Income tax expense	8,366		7,617
Total costs and expenses		611,334		477,849
Net income		$ 32,175		$ 29,960
Earnings per share		$ 1.98		$ 1.84

Additional information about the company follows.

Common stock market price, December 31, Current Year	$ 31.00
Common stock market price, December 31, 1 Year Ago	29.00
Annual cash dividends per share in Current Year	0.36
Annual cash dividends per share 1 Year Ago	0.18

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?

Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Compute the return on equity for each year