The following information was in the annual report of Rover Company:
|
2009 |
2008 |
2007 |
|
|
Earnings per share |
$1.12 |
$1.20 |
$1.27 |
|
Cash dividends per share (common) |
$0.90 |
$0.85 |
$0.82 |
|
Market price per share |
$12.80 |
$14.00 |
$16.30 |
|
Total common dividends |
$21,700,000 |
$19,500,000 |
$18,360,000 |
|
Shares outstanding, end of year |
24,280,000 |
23,100,000 |
22,500,000 |
|
Total assets |
$1,280,100,000 |
$1,267,200,000 |
$1,260,400,000 |
|
Total liabilities |
$800,400,000 |
$808,500,000 |
$799,200,000 |
|
Nonredeemable preferred stock |
$15,300,000 |
$15,300,000 |
$15,300,000 |
|
Preferred dividends |
$910,000 |
$910,000 |
$910,000 |
|
Net income |
$31,200,000 |
$30,600,000 |
$29,800,000 |
Required
a. Based on these data, compute the following for 2009, 2008, and 2007:
1. Percentage of earnings retained
2. Price/earnings ratio
3. Dividend payout
4. Dividend yield
5. Book value per share
b. Discuss your findings from the viewpoint of a potential investor.