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

Earnings per share $ 1.12 (2011) $ 1.20 (2010) $ 1.27 (2009) Cash dividends per share (common) $ 0.90 (2011) $ 0.85 (2010) $ 0.82 (2009) Market price per share $ 12.80 (2011) $ 14.00 (2010) $ 16.30 (2009) Total common dividends $ 21,700,000 (2011) $ 19,500,000 (2010) $ 18,360,000 (2009) Shares outstanding, end of year 24,280,000 (2011) 23,100,000 (2010) 22,500,000 (2009) Total assets $1,280,100,000 (2011) $1,267,200,000 (2010) $1,260,400,000 (2009) Total liabilities $ 800,400,000 (2011) $ 808,500,000 (2010) $ 799,200,000 (2009) Nonredeemable preferred stock $ 15,300,000 (2011) $ 15,300,000 (2010) $ 15,300,000 (2009) Preferred dividends $ 910,000 (2011) $ 910,000 (2010) $ 910,000 (2009) Net income $ 31,200,000 (2011) $ 30,600,000 (2010) $ 29,800,000 (2009) (continued)

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.