Over the last 10? years, a firm has had the earnings per share shown in the following? table:

.

2015	$1.50	2010	$3.55
2014	$3.01	2009	$1.76
2013	$3.73	2008	$1.76
2012	$2.93	2007	-$1.31
2011	$4.81	2006	$0.56

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

2015??

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 2015??

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 2015??

d.??Discuss the pros and cons of each dividend policy described in parts a through