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 2018? 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 2018? 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 2018? d. Discuss the pros and cons of each dividend policy described in parts a through c. Year 2022 2021 2020 2019 2018 Earnings per share Year $4.68 2017 $4.18 2016 $4.55 2015 $3.25 2014 $3.47 2013 Earnings per share $3.87 $1.17 $1.78 - $0.53 $0.62