Alternative dividend policies Given the earnings per share over the period 2012-2019 shown in the following table, determine the annual dividend per share under each of the policies set forth in parts a through d. a. Pay out 50% of earnings in all years with positive earnings b. Pay $0.50 per share and increase to $0.60 per share whenever earnings per share rise above $1.10 per share for two consecutive years. c. Pay $0.50 per share except when earnings exceed $1.20 per share, in which case pay an extra dividend of 60% of earnings above $1.20 per share. d. Combine policies in parts b and c. When the dividend is raised in part b), raise the excess dividend base (in part c) from $1.20 to $1.30 per share. e. Compare and contrast each of the dividend policies described in parts a through d. a. If the firm pays out 50% of earnings in all years with positive earnings, the annual dividend the firm would pay in year 2011 is $. (Round to the nearest cent.) b. If the firm pays $0.50 per share and increases the dividend to $0.60 per share whenever earnings per share rise above $1.10 per share for two consecutive years, the annual dividend the firm would pay in year 2011 is $(Round to two decimal places.) c. If the firm pays $0.50 per share except when earnings exceed $1.20 per share, in which case pay an extra dividend of 60% of earnings above $1.20 per share the annual dividend the firm would pay in year 2011 is $. (Round to two decimal places.) d. If the firm combines policies in parts b and c, when the dividend is raised (in part b), it raises the excess dividend base in part c) from $1.20 to $1.30 per share. The annual dividend the firm would pay in this case in year 2011 is $ (Round to two decimal places.) e. Compare and contrast each of the dividend policies described in parts a through d. Data Table - X Which policy uses a constant-payout ratio? (Select the best answer below.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) O A. The policy described in part a is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. O B. The policy described in part d is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. O C. The policy described in part c is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. OD. The policy described in part b is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs Which policy uses a regular dividend? (Select the best answer below.) Year 2019 2018 2017 2016 2015 2014 2013 2012 Earnings per share $1.58 $1.57 $1.22 $0.65 $1.03 $0.55 $0.98 O A. Policy described in part a uses a regular dividend policy which minimizes the owners' uncertainty of earnings. R Policy decrrihed in nart hicas a renular dividend nolir which minimize the numare' uncertainty of earninne Click to select your answer(s). $0.37 Alternative dividend policies Given the earnings per share over the period 2012-2019 shown in the following table, determine the annual dividend per share under each of the policies set forth in parts a through d. a. Pay out 50% of earnings in all years with positive earnings b. Pay $0.50 per share and increase to $0.60 per share whenever earnings per share rise above $1.10 per share for two consecutive years. c. Pay $0.50 per share except when earnings exceed $1.20 per share, in which case pay an extra dividend of 60% of earnings above $1.20 per share. d. Combine policies in parts b and c. When the dividend is raised in part b), raise the excess dividend base (in part c) from $1.20 to $1.30 per share. e. Compare and contrast each of the dividend policies described in parts a through d. a. If the firm pays out 50% of earnings in all years with positive earnings, the annual dividend the firm would pay in year 2011 is $. (Round to the nearest cent.) b. If the firm pays $0.50 per share and increases the dividend to $0.60 per share whenever earnings per share rise above $1.10 per share for two consecutive years, the annual dividend the firm would pay in year 2011 is $(Round to two decimal places.) c. If the firm pays $0.50 per share except when earnings exceed $1.20 per share, in which case pay an extra dividend of 60% of earnings above $1.20 per share the annual dividend the firm would pay in year 2011 is $. (Round to two decimal places.) d. If the firm combines policies in parts b and c, when the dividend is raised (in part b), it raises the excess dividend base in part c) from $1.20 to $1.30 per share. The annual dividend the firm would pay in this case in year 2011 is $ (Round to two decimal places.) e. Compare and contrast each of the dividend policies described in parts a through d. Data Table - X Which policy uses a constant-payout ratio? (Select the best answer below.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) O A. The policy described in part a is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. O B. The policy described in part d is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. O C. The policy described in part c is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs. OD. The policy described in part b is a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs Which policy uses a regular dividend? (Select the best answer below.) Year 2019 2018 2017 2016 2015 2014 2013 2012 Earnings per share $1.58 $1.57 $1.22 $0.65 $1.03 $0.55 $0.98 O A. Policy described in part a uses a regular dividend policy which minimizes the owners' uncertainty of earnings. R Policy decrrihed in nart hicas a renular dividend nolir which minimize the numare' uncertainty of earninne Click to select your answer(s). $0.37
