Requlred Information

Use the following information for the Exercises below. $($Algo$)$

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

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

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

Exercise $13-11($Algo$)$ Analyzing profitablilty LO P$3$

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

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

$$32\mathrm{.}00$

$30\mathrm{.}00$

$0\mathrm{.}28$

$0\mathrm{.}14$

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 $7,$ which company has higher market expectations for future growth?

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

Required $1$

Required $3A$

Compute the dividend yield for each year.

Note: Round your answers to $2$ decimal places.