Simon Company's year-end balance sheets follow.

At December 31Current Yr1 Yr Ago2 Yrs AgoAssetsCash$31,100$34,300$36,800Accounts receivable, net88,30063,10059,300Merchandise inventory72,40683,50053,300Prepaid expenses9,96210,3893,267Plant assets, net333,232

293,711147,333Total assets$535,000$485,000$300,000Liabilities and EquityAccounts payable$135,879$82,785$39,996Long-term notes payable secured by

mortgages on plant assets99,574110,43466,300Common stock, $10 par value162,500162,500162,500Retained earnings137,047129,28131,204Total liabilities and equity$535,000$485,000$300,000

The company's income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31Current Yr1 Yr AgoSales$695,500$577,150Cost of goods sold$424,255$375,148Other operating expenses215,605146,019Interest expense11,82413,274Income tax expense9,0428,657Total costs and expenses660,726543,098Net income$34,774$34,052Earnings per share$2.14$2.10

Additional information about the company follows.

Common stock market price, December 31, Current Year$31.00Common stock market price, December 31, 1 Year Ago29.00Annual cash dividends per share in Current Year0.24Annual cash dividends per share 1 Year Ago0.12

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.