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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2005 2006 2007 2008 2009 Revenues S549.7 S5874 $601.7 $593.0 S543.8 55.4 75.9 88.2 73.9 55.4 Net income Common stockholders' equity (year-end 262.3 337.8 337.4 454.1 456.1 Common shares outstanding (year-end) 59.7 63.9 64.0 64. 62.9