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 $ 31,200 $ 34,200 $ 37,700 88,100 64,600 54,500 22,977 82,300 55,600 9,952 8,861 4,070 387,771 245,039 218,130 $540,000 $435,000 $ 370,000 $131,771 $ 75,720 $ 49,817 98,474 101,051 80,952 162,500 162,500 162,500 147,255 95,729 76,731 $540,000 $435,000 $ 370,000 The company's income statements for the Current Year and 1 Year Ago, follow. Current Yr $ 702,000 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 $ 428,220 217,620 11,934 9,126 1 Yr Ago $ 517,650 $336,473 130,965 11,906 7,765 487,109 $ 30,541 666,900 $ 35,100 $ 2.16 $ 1.88 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 $ 34.00 32.00 0.28 0.14 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: I Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago: Required 1 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 1 Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio = Current Year: 1 Year Ago: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield 1 Choose Denominator: Choose Numerator: = = Dividend Yield Dividend yield Current Year: 1 Year Ago