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

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. 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

38%

of EPS.

b. Paying out dividends at a fixed rate of

$1.15

per share.

Given Information:

Year	EPS
2015	$1.58
2016	$2.22
2017	$1.15
2018	$3.96
2019	$0.81