Alternative dividend policies - Over the last 10 years a firm has had the earnings per share in the following table:

Year	Earnings per share	Year	Earnings per share
2019	$3.33	2014	$2.06
2018	4.81	2013	1.55
2017	3.04	2012	1.42
2016	3.63	2011	-1.58
2015	4.54	2010	0.34

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 earning per share exceed $2.00, 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.