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Question Two: Apple, Inc has the following 5-year record of earnings per share: YEAR EPS (S) 2016 1.40 2017 2.10 2018 1.00 2019 3.25 2020

Question Two: Apple, Inc has the following 5-year record of earnings per share: YEAR EPS (S) 2016 1.40 2017 2.10 2018 1.00 2019 3.25 2020 using the information in the above table, which of the following methods will produce more dividends to common shareholders over the 5-year period? Why? A. Paying a fixed dividend ratio of 40% of EPS. B. Paying a fixed rate of $1 per share.

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Question Two: Apple, Inc has the following 5-year record of earnings per share: YEAR EPS () 2016 1.40 2017 2.10 2018 1.00 2019 3.25 2020 0.80 Using the information in the above table, which of the following methods will produce more dividends to common shareholders over the 5-year period? Why? A. Paying a fixed dividend ratio of 40% of EPS. B. Paying a fixed rate of $1 per share

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