Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,425 94,908 119,328 10,545 286,927 $ 544,133 $ 37,526 65, 671 85,912 9,851 270, 120 $ 469,080 $ 39,473 50,567 56,063 4,343 240,454 $ 390,900 $ 136,844 103,320 163,500 140,469 $ 544,133 $ 79,275 108,967 162,500 118,338 $ 469,080 $ 52,115 86,389 163,500 88,896 $ 390,900 For both the current year and one year ago, compute the following ratios: The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 707, 373 $ 431,498 219,286 12,025 9, 196 672,005 $ 35, 368 $ 2.18 1 Year Ago $ 558,205 $ 362,833 141,226 12,839 8,373 525,271 $ 32,934 $ 2.03 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 28.00 26.00 0.26 0.13 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