A company has the following figures of EPS during past five years:

Year EPS (Rs)

2000 1.80 2001 2.00 2002 2.20 2003 1.70 2004 3.00 Determine the annual dividend per share under the following conditions:

(a) Stable dividend pay-out ratio of 50%

(b) A regular dividend of Re 1 and extra dividend to match with the stable dividend pay-out ratio

(c) A stable dividend amount but that can be raised to a DPR of 40%–60%. The dividend amount should be approximately equal to 40%