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Alternative dividend policies Over the last 1 0 years, a firm has had the earnings per share shown in the following table: . a .

Alternative dividend policies Over the last 10 years, a firm has had the earnings 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 earnings and 0% otherwise, what would be the
annual dividend for 2019?
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 2019?
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 2019?
d. Discuss the pros and cons of each dividend policy described in parts a through c.
Data table
(Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
ngs and 0% otherwise, the annual dividend
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