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Preferred dividends decreased this year because some preferred stock was retired

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1. Preferred dividends decreased this year because some preferred stock was retired. How would this influence the earnings per share computation this year?
2. Retroactive recognition is given to stock dividends and stock splits on common stock when computing earnings per share. Why?
3. Why do many firms try to maintain a stable percentage of earnings retained?
4. Why is the price/earnings ratio considered a gauge of future earning power?
5. Why does a relatively new firm often have a low dividend payout ratio? Why does a firm with a substantial growth record and/or substantial growth prospects often have a low dividend payout ratio?
6. Why would an investor ever buy stock in a firm with a low dividend yield?
7. Why is book value often meaningless? What improvements to financial statements would make it more meaningful?
8. Why should an investor read the note concerning stock options? How might stock options affect profitability?
9. Which of the following is not considered to be a recurring item?
10. Ideally, which of these ratios will indicate the highest return for an individual firm?