The following information applies to the questions displayed below.$]$

Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $34,403$ $ $41,421$ $ $41,069$

Accounts receivable, net $101,70670,37552,611$

Merchandise inventory $126,62292,99658,329$

Prepaid expenses $10,85810,5564,429$

Plant assets, net $309,521287,333250,262$

Total assets $ $583,110$ $ $502,681$ $ $406,700$

Liabilities and Equity

Accounts payable $ $142,291$ $ $87,502$ $ $52,611$

Long$-$term notes payable $111,817112,14890,780$

Common stock, $$10$ par value $162,500162,500162,500$

Retained earnings $166,502140,531100,809$

Total liabilities and equity $ $583,110$ $ $502,681$ $ $406,700$

For both the current year and one year ago, compute the following ratios:

Exercise $17-11($Algo$)$ Analyzing profitability LO P$3$

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

For Year Ended December $31$ Current Year $1$ Year Ago

Sales $ $758,043$ $ $598,190$

Cost of goods sold $ $462,406$ $ $388,824$

Other operating expenses $234,993151,342$

Interest expense $12,88713,758$

Income tax expense $9,8558,973$

Total costs and expenses $720,141562,897$

Net income $ $37,902$ $ $35,293$

Earnings per share $ $2\mathrm{.}33$ $ $2\mathrm{.}17$

Additional information about the company follows.

Common stock market price, December $31,$ Current Year $ $31\mathrm{.}00$

Common stock market price, December $31,1$ Year Ago $29\mathrm{.}00$

Annual cash dividends per share in Current Year $0\mathrm{.}34$

Annual cash dividends per share $1$ Year Ago $0\mathrm{.}17$

For both the current year and one year ago, compute the following ratios:

$1.$ Return on equity.

$2.$ Dividend yield.

$3$a$.$ Price$-$earnings ratio on December $31.$

$3$b$.$ Assuming Simon's competitor has a price$-$earnings ratio of $6,$ which company has higher market expectations for future growth?