Smith and Jones, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2011 annual report:

	2011 2010
Earnings per share	$ 1.08	$ 1.14
Cash dividends per common share	$ 0.80	$ 0.76
Market price per common share	$ 12.94	$ 15.19
Common shares outstanding	25,380,000	25,316,000
Total assets	$1,264,086,000	$1,173,924,000
Total liabilities	$ 823,758,000	$ 742,499,000
Nonredeemable preferred stock	$ 16,600,000	$ 16,600,000
Preferred dividends	$ 4,567,000	$ 930,000
Net income	$ 32,094,000	$ 31,049,000

Based on these data, compute the following for 2011 and 2010:

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.