2. ABC (Company) paid annual dividend of $2.04/share and generated EPS of $1.90 in 2019. ABC stock was trading at $39/share at year-end 2019. The book value per share was $25 at year-end.

What was the dividend yield on the ABC's stock in 2019? What was the dividend payout by ABC?

ABC paid an annual dividend of $1.88/share in 2016 and increased the amount paid each successive year. What is the average, annual percentage growth in dividends between 2016 and 2019 (three years of growth)?

Does ABC follow the residual theory or the stable growth theory of dividend policy? Why?