Question: TransAmerica is an interstate railroad cargo transportation company The following

TransAmerica is an interstate railroad cargo transportation company. The following table presents key financial data for Trans America over a recent five-year period. Amounts are expressed in millions of dollars.
At the beginning of 2005, TransAmerica had $228.7 million of common stockholders’ equity. Annual preferred stock dividends are $1.5 million.
Required:
(a) Compute TransAmerica’s book value per share at the end of each year listed.
(b) Compute the company’s return on equity for each year.
(c) Is there a definite trend apparent in either book value per share or ROE? If so, indicate whether that trend is favorable or unfavorable.
(d) Suppose that you are a potential investor in TransAmerica common stock. Identify three questions related to the company’s financial data that you would want to ask the company’s top executives.



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  • CreatedMarch 27, 2015
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