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

2000 1999 1998 Earnings per share $ 1.12 $ 1.20 $ 1.27 Cash dividends per share

(common) $ .90 $ .85 $ .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 Required

a. Based on these data, 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. Discuss your findings from the viewpoint of a potential investor.