Alternative dividend policies Given the earnings per Share over the period 2012-2019 shown in the following table, ma determine the annual dividend per share under each of the policies se a. Pay out 60% of earnings in all years with positive earnings b. Pay $0.40 per share and increase to 50.50 per share whenever earnings per share rise above 50 90 per share for two consecutive years c. Pay $0.40 per share except when earnings exceed 51,00 per share, in which case pay an extra dividend of 70% of earnings above $1.00 per share d. Combine policies in parts b and c. When the dividend is raised in part b), raise the excess dividend base (in partc) from $100 to $1.10 per share e. Compare and contrast each of the dividend policies described in parts a through a. If the firm pays out 60% of earnings in all years with positive earnings, the annual dividend the firm would pay in year 2010 is S Round to the nearest cent b. the firm pays $0.40 per share and increases the dividend to 50 50 per share whenever earnings per share rise above 50 90 per share for two consecutive years the annual dividend their (Round to two decimal places c. the firm pays 50 40 per share except when earings exceed $1.00 per share in which case pay an extra dividend of 70% of earnings above $1.00 per share the annualifividend the fem would (Round to two decimal places.) d. If the firm combines policies in parts b and when the dividend is raised in part bj trases the excess dividend base (in partc from $1.00 to $110 per share. The annual dividend them is (Round to two decimal places) e. Compare and contrast each of the dividend policies described in parts a through d Which policy uses a constant-payout ratlo? Select the best answer below) C A. The policy described in part is a constant cavout ratio which will viel low or no dividends if earnings decline or a loss occur Click to select your answers i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Se Year 2019 2018 2017 2016 2015 2014 Earnings per share $1.55 $1.56 $1.36 - 50.89 $1.07 50.65 50.98 50.31 2013 2012 Print Done