A firm has had the following earnings history over the last fiveyears:ModifyingAbove and below Start 2 By 1 Matrix 1st Row 1st Column Bold Year Earnings per Share 2nd Row 1st Column Start 5 By 1 Matrix 1st Row 1st Column 2015 $ 2.50 2nd Row 1st Column 2014 2.00 3rd Row 1st Column 2013 1.75 4st Row 1st Column 2012 1.25 5st Row 1st Column 2011 minus 1.00 EndMatrix EndMatrix with brackets

YearEarningsperShare

2015$2.50

20142.00

20131.75

20121.25

20111.00

If thefirm's dividend policy was based on a constant payout ratio of 50 percent for all of the years with earnings over$1.50 per share and a zero payoutotherwise, the annual dividends for 2012 and 2015 were________.

A.

$0.50 and$1.25, respectively

B.

$0 and$1.25, respectively

C.

$0 and$2.00, respectively

D.

$0 and$0.88, respectivelyClick to select your answer.