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

2020?

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 2020?

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 2020?

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

2022	3.29	2017	3.93
2021	3.52	2016	1.72
2020	4.04	2015	1.68
2019	3.61	2014	-1.89