Ove r the last 10 years a firm has had the earnings per share shown in the following table: Year Earnings per share 2012 $4.00 2011 3.80 2010 3.20 2009 2.89 2008 3.20 2007 2.40 2006 1.20 2005 1.80 2004 -0.50 2003 0.25 A. If the firms dividend policy were based on a constant payout ration of 40% for all years with positive earnings and 0% otherwise,what would be the annual dividend for each year? 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 each year? C. If the firms 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 43.00 would be paid,what annual dividend would the firm pay each year? D. Discuss the pros and cons of each dividend policy described in parts a and c