Given the earnings per share over the period 2005€“2012 shown in the following table, determine the annual dividend per share under each of the policies set forth in parts a through d.

a. Pay out 50% of earnings in all years with positive earnings.
b. Pay $0.50 per share and increase to $0.60 per share whenever earnings per share rise above $0.90 per share for two consecutive years.
c. Pay $0.50 per share except when earnings exceed $1.00 per share, in which case pay an extra dividend of 60% of earnings above $1.00 per share.
d. Combine the policies described in parts b and c. When the dividend is raised (in part b), raise the excess dividend base (in part c) from $1.00 to $1.10 per share.
e. Compare and contrast each of the dividend policies described in parts a throughd.

Earnings per share Year 2012 2011 2010 2009 2008 2007 2006 2005 S1.40 1.56 1.20 0.85 1.05 0.60 1.00 0.44