Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 $ 34,700 $ 36,800 89, 700 63,200 54,700 74,730 83,300 54,300 11,004 9,879 3,666 377,766 293,921 180,534 $585,000 $485,000 $330,000 $141,295 $ 81,965 $ 43,996 109,980 110, 434 75, 118 162,500 162,500 162,500 171,225 130, 101 48,386 $585,000 $485,000 $330,000 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 577,150 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 Yr $760,500 $ 463,905 235, 755 12,929 9,887 722,476 $ 38,024 $375, 148 146,019 13,274 8,657 543,098 $ 34,052 2.34 2.10 Additional information about the company follows. $28.00 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 26.00 0.32 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 7, which company has higher market expectation future growth? 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: Return On Commor Stockholders' Equit Return on common stockholders' equity Current Year: II 1 Year Ago: Required 2 > Required 1 Required 2 Required 2a Required 3 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: