Consider Company ZZZ that has annual earnings of $2.50 per share and pays a yearly cash dividend of $3.10 per share. Which of the following statements is correct?

A. Company ZZZ will have to borrow the difference between $3.10 and $2.50 to pay the full dividend.

B. Company ZZZ should reduce the dividend it pays to the shareholders.

C. Company ZZZ should cut the dividend it pays to the shareholders.

D. Company ZZZ should try to increase its annual earnings in order to be able to pay the dividend to its shareholders.

E. None of the above.