Final earnings estimates for Tsingtao Brewery Co. Ltd., China’s second largest brewery, have been prepared for the CFO of the company and are shown in the following table. The firm has 9,700,000 shares of common stock outstanding. As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid depending on the following possible policies:

a. A stable Chinese yuan dividend targeted at 30 percent of earnings over a 5-year period.

b. A small, regular dividend of ¥0.45 per share plus a yearend extra when profits in any year exceed ¥25 million.

The year-end extra will be equal to 45 percent of profits exceeding ¥25 million.

c. A constant dividend payout ratio of 30 percent.

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Year Profits after Taxes 1 2 19,000,000 22,000,000 3 20,000,000 4 27,000,000 5 29,000,000