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

Year		Earnings per share	Year		Earnings per share
2022		$3.53	2017		$3.41
2021		$3.88	2016		$1.04
2020		$4.71	2015		$1.17
2019		$3.51	2014		$0.91
2018		$4.11	2013		$

a.If the firm's dividend policy were based on a constant payout ratio of40%for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2014?

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 2014?

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 2014?

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