The following information was in the annual report of Rover Company:

  

      

  

Required

a. Based on these data, compute the following for 2011, 2010, and 2009:

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.

 

Transcribed Image Text:

2011 2010 2009 Earnings per share Cash dividends per share (common) Market price per share Total common dividends Shares outstanding, end of year Total assets 1.12 1.20 1.27 0.90 0.85 0.82 $ $ 19,500,000 23,100,000 $1,267,200,000 $ 808,500,000 $ 15,300,000 $ 14.00 12.80 $ 21,700,000 24,280,000 $1,280,100,000 $ 800,400,000 $ 15,300,000 910,000 $ 31,200,000 16.30 $ 18,360,000 22,500,000 $1,260,400,000 $ 799,200,000 $ 15,300,000 910,000 $ 29,800,000 Total liabilities Nonredeemable preferred stock Preferred dividends 910,000 $ 30,600,000 Net income SSSS 2011 2010 2009 Earnings per share Cash dividends per share (common) Market price per share Total common dividends Shares outstanding, end of year Total assets 1.12 1.20 1.27 0.90 0.85 0.82 $ $ 19,500,000 23,100,000 $1,267,200,000 $ 808,500,000 $ 15,300,000 $ 14.00 12.80 $ 21,700,000 24,280,000 $1,280,100,000 $ 800,400,000 $ 15,300,000 910,000 $ 31,200,000 16.30 $ 18,360,000 22,500,000 $1,260,400,000 $ 799,200,000 $ 15,300,000 910,000 $ 29,800,000 Total liabilities Nonredeemable preferred stock Preferred dividends 910,000 $ 30,600,000 Net income SSSS

Answer rating: 100% (QA)

1 Percentage of earnings retained Percentage of earnings retainednet incomeall dividendsnet income 2011 2010 Net income 31200000 30600000 Less Common ... View the full answer