3 The following information was in the annual report of Rover Company: 2011 2010 2009 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 Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 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.