Lintner Ltd declares dividends in a predictable pattern. Its target dividend payout ratio average 55% of annual earnings. When earnings change, however, the company usually changes its dividend only half way toward the level that the target payout ratio would imply. The last dividend was 10c per share, and the company has just announced after-tax annual earnings of 30c per share. 1. 125c 2. 125c 3.25c 4. None of the above N O