Percentage of earnings retained

Assignment Help Accounting Basics

Reference no: EM131004122

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.

Reference no: EM131004122

Questions Cloud

How has the combination of immigration restrictions : How has the combination of immigration restrictions and exclusions on citizenship created an Asian American race that is seen as "forever foreigner"?

What if a line has no x-intercept : That is a good start, but we need more information. What do the different symbols in this equation you posted mean? Can you give us an example using another equation, like 6x + 3y = 9, and show us how we can use the formula you posted to find the ..

Recovery-pollution control equipment for purification : "Met-Pro . . . manufactures and sells product recovery/pollution control equipment for purification of air and liq- uids, and fluid handling equipment for corrosive, abrasive, and high temperature liquids." 10-K

Receiving stock appreciation rights over stock options : What is the executive's main advantage of receiving stock appreciation rights over stock options? In 2008, a $15,000 expense is recorded. What is the offsetting account?

Percentage of earnings retained : The following data relate to Edger Company:

How do we use a driver manager in java : What are the most common kinds of queries in general and how can we use them?

How actions of u.s. businesses affecting income distribution : Visit the Census Bureau's page on poverty statistics at http://www.census.gov/hhes/www/ poverty.html. Look at the Small Area Income and Poverty Estimates, and find the latest poverty estimate for your county. How does the poverty rate there compar..

How does the implicit tax on earned income : Discuss the key features of welfare reforms introduced by the federal government in 1996.Why were policy makers worried that turning welfare over to the states would result in a "race to the bottom"?

Show an understanding of the civil liabilities : Show an understanding of the civil liabilities of criminal justice agencies and practitioners. Cite case law regarding the possible civil action that could be taken against the police officer, the department, and the city

User Account

All Pages