P 9-3 The following information was in the annual report of Rover Company:Earnings per share $ 1.12 $ 1.20 $ 1.27 Cash dividends per share (common) $ 0.90 $ 0.85 $ 0.82 Market price per share $ 12.8

P 9-3 The following information was in the annual report of Rover Company: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

(continued)

CHAPTER 9 • For the Investor 377

9781285276106, Financial Reporting and Analysis, Charles H. Gibson – © Cengage Learning.

All rights reserved. No distribution allowed without express authorization. Distributed by Grand Canyon University.

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.

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