Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 32,000 $ 34,600 $ 36,600 89,600 62,500 57,300 41,581 82,200 55,900 11, 322 10,274 4,264 415, 497 285,426 225,936 $590,000 $475,000 $380,000 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $145,441 $ 78,670 $ 50, 160 110,920 111, 435 84,820 162,500 162,500 162,500 171,139 122,395 82,520 $590,000 $475,000 $380,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended Current Yr December 31 1 Yr Ago Sales $767,000 $565,250 Cost of goods sold $467,870 $367,413 Sola Other operating 237,770 expenses 143,008 Interest expense 13,039 13,001 Income tax 9,971 8,479 expense Total costs and 728,650 531,901 expenses Net income $ 38, 350 $ 33, 349 Earnings per 2.36 $ 2.05 share $ Additional information about the company follows. Common stock market price, December $30.00 31, Current Year Common stock market price, December 28.00 31, 1 Year Ago Annual cash dividends per share in 0.28 Current Year Annual cash dividends per share 1 0.14 Year Ago 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. Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 2a 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Return On Common Choose Numerator: Choose Denominator: = Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago: % % Complete this question by entering your answers in the tabs below. Required Required Required Required 2 2a 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) 1 Price-Earnings Ratio Choose Numerator: I Choose Denominator: = Price-Earnings Ratio Price-earnings ratio = = Current Year: 1 Year Ago: = Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 2a 3 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? Complete this question by entering your answers in the tabs below. Required Required Required Required 2 2a 3 1 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator: 1 Choose Denominator: Dividend = Yield = Dividend yield % % Current Year: 1 Year Ago 1 =