Southern Cities Trucking Company has the following five-year record of earnings per share:

Which of the following procedures would produce higher dividends to stockholders over this five-year period?

a. Paying out dividends at a fixed ratio of 46% of EPS.

b. Paying out dividends at a fixed rate of $1.25 per share.

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Part 1

a. If they pay out dividends at a fixed ratio of 46% of EPS, the total of the dividends over the 5-year period is

$?(Round to the nearest cent.)

b. ?

\begin{tabular}{cc} Year & EPS \\ \hline 2015 & $1.72 \\ 2016 & $2.56 \\ 2017 & $1.25 \\ 2018 & $4.25 \\ 2019 & $1.02 \\ \hline \end{tabular}