Smith and Jones, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2009 annual report:
|
2009 |
2008 |
|
|
Earnings per share |
$1.08 |
$1.14 |
|
Cash dividends per common share |
$0.80 |
$0.76 |
|
Market price per common share |
$12.94 |
$15.19 |
|
Common shares outstanding |
25,380,000 |
25,316,000 |
|
Total assets |
$1,264,086,000 |
$1,173,924,000 |
|
Total liabilities |
$823,758,000 |
$742,499,000 |
|
Nonredeemable preferred stock |
$16,600,000 |
$16,600,000 |
|
Preferred dividends |
$4,567,000 |
$930,000 |
|
Net income |
$32,094,000 |
$31,049,000 |
Required
a. Based on these data, compute the following for 2009 and 2008:
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.