accounting

P 9-4. The following data relate to Edger Company: 2007 2006 2005 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 2007, 2006, and 2005, respectively Required a. Compute the following for 2007, 2006, and 2005: 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. P 9-5. Dicker Company has the following pattern of financial data for Years 1 and 2: Year 1 Year 2 Net income $40,000 $42,000 Preferred stock (5%) $450,000 $550,000 Weighted average number of common shares outstanding 38,000 38,000 Required Calculate earnings per share and comment on the trend. P 9-6. Assume the following facts for the current year: Common shares outstanding on January 1, 50,000 shares July 1, 2-for-1 stock split October 1, a stock issue of 10,000 shares Required Compute the denominator of the earnings per share computation for the current year