The following data relate to the Edger Company:

2000 1999 1998 Earnings per share $ 2.30 $ 3.40 $ 4.54 Dividends per share $ 1.90 $ 1.90 $ 1.90 Market price, end of year $ 41.25 $ 35.00 $ 29.00 Net income $ 9,100,000 $ 13,300,000 $ 16,500,000 Total cash dividends $ 6,080,000 $ 5,900,000 $ 6,050,000 Order backlog at year-end $5,490,800,000 $4,150,200,000 $3,700,100,000 Net contracts awarded $2,650,700,000 $1,800,450,000 $3,700,100,000 Note: The stock was selling at 120.5%, 108.0%, and 105.0% of book value in 2000, 1999, and 1998, respectively.

Required

a. Compute the following for 2000, 1999, and 1998:

1. Percentage of earnings retained 2. Price/earnings ratio 3. Dividend payout 4. Dividend yield 5. Book value per share

b. Comment on your results from (a). Include in your discussion the data on backlog and new contracts awarded.