the following table. The firm has $4,000,000$ shares of common stock outstanding. As

assistant to the CFO, you are asked to determine the yearly dividend per share to be

paid depending on the following possible policies:

a$.$ A stable dollar dividend targeted at $30$ percent of earnings over a $5-$year period.

b$.$ A small, regular dividend of $$0\mathrm{.}60$ per share plus a year$-$end extra when the

profits in any year exceed $$18$ million. The year$-$end extra dividend will equal

$50$ percent of profits exceeding $$20$ million.

c$.$ A constant dividend payout ratio of $40$ percent.