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 $4.24 2017 $3.87 2016 $3.91 2015 $2.54 2014 $4.36 2013 Earnings per share $2.16 $1.79 $1.67 - $1.86 $0.72 IS (Round to the nearest cent.) 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, the annual dividend fo. 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, the annual dividend the firm would pay in $ 1.50 (Round to the nearest cent.) 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, the annual dividend the firm would pay in $ 1.24. (Round to the nearest cent.) is d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) *A. The policy described in part a. B. The policy described in part b. O C. The policy described in part c. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) A. The policy described in part a. B. The policy described in part b. C. The policy described in part c