transamerica is an interstate railroad cargo transportation company the following table presents key financial data for trans america
At the beginning of 2005, TransAmerica had $228.7 million of common stockholders equity. Annual preferred stock dividends are $1.5 million.
Required:
(a) Compute TransAmerica book value per share at the end of each year listed.
(b) Compute the company return on equity for each year.
(c) Is there a definite trend apparent in either book value per share or ROE? If so, indicate whether that trend is favorable or unfavorable.
(d) Suppose that you are a potential investor in TransAmerica common stock. Identify three questions related to the company financial data that you would want to ask the company top executives.

