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

Sales $ $809,195$ $ $638,556$

Cost of goods sold $ $493,609$ $ $415,061$

Other operating expenses $250,850161,555$

Interest expense $13,75614,687$

Income tax expense $10,5209,578$

Total costs and expenses $768,735600,881$

Net income $ $40,460$ $ $37,675$

Earnings per share $ $2\mathrm{.}49$ $ $2\mathrm{.}32$

Additional information about the company follows.

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

Common stock market price, December $31,1$ Year Ago $27\mathrm{.}00$

Annual cash dividends per share in Current Year $0\mathrm{.}30$

Annual cash dividends per share $1$ Year Ago $0\mathrm{.}15$

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

Return on equity.

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?

Complete this question by entering your answers in the tabs below.

Required $3$A

Compute the return on equity for each year.