Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The following data relate to Edger Company 2009 2008 2007 Earnings per share $2 30 $3...

The following data relate to Edger Company 2009 2008 2007 Earnings per share $2 30 $3.40 $4.54 Dividends per share $1.90 $1.90 $1.90 Market price, end of year

The following data relate to Edger Company:

 

2009

2008

2007

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 2009, 2008, and 2007, respectively.

Required

a. Compute the following for 2009, 2008, and 2007:

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.

Jun 17 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions