2. Alternative dividend policies Over the last 10 years, a firm has had the earrings per share shown in the following table: a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive eamings and 0% otherwise, what would be the annual dividend for 2018? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2018? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2018? d. Discuss the pros and cons of each dividend policy described in parts a through c. a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive eamings and 0% otherwise, the annual dividend for 2018 is $ . (Round to the nearest cent.) (Round to the b. If the firm had a dividend payout of $1.00 per share. Increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, the annual dividend the firm would pay in 2018 is S nearest cent.) c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of eamings beyond $3.00 would be paid, the annual dividend the firm would pay in 2018 is . (Round to the nearest cent.) d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) O A. The policy described in part b. OB. The policy described in part c. O C. The policy described in part a. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) O A. The policy described in part a. OB. The policy described in part b. O C. The policy described in part c. 2: Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadshout.) Year 2019 2018 2017 2016 2015 Earnings per share Earnir $4.51 $4.43 53.18 S2.14 $3.22 Year 2014 2013 2012 2011 2010 Earnings per share $2.77 $1.35 $1.73 - $0.98 S0.69