Over the last 10 years, a firm has had the earnings per share shown in the...

  

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Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2014? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2014? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2014? d. Discuss the pros and cons of each dividend policy described in parts a through c. I a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2014 is $ (Round to the nearest cent.) b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, the annual dividend the firm would pay in 2014 is $. (Round to the nearest cent.) c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, the annual dividend the firm would pay in 2014 is $ (Round to the nearest cent.) d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) OA. The policy described in part a. OB. The policy described in part b. OC. The policy described in part c. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) OA. The policy described in part a. OB. The policy described in part b. OC. The policy described in part c. Year Earnings per share Year 2022 2017 2021 2016 2020 2019 2018 $3.85 $4.01 $3.59 $3.59 $3.17 2015 2014 2013 Earnings per share $3.62 $1.56 $1.97 - $1.73 $0.26 Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2014? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2014? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2014? d. Discuss the pros and cons of each dividend policy described in parts a through c. I a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2014 is $ (Round to the nearest cent.) b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, the annual dividend the firm would pay in 2014 is $. (Round to the nearest cent.) c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, the annual dividend the firm would pay in 2014 is $ (Round to the nearest cent.) d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) OA. The policy described in part a. OB. The policy described in part b. OC. The policy described in part c. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) OA. The policy described in part a. OB. The policy described in part b. OC. The policy described in part c. Year Earnings per share Year 2022 2017 2021 2016 2020 2019 2018 $3.85 $4.01 $3.59 $3.59 $3.17 2015 2014 2013 Earnings per share $3.62 $1.56 $1.97 - $1.73 $0.26

Answer rating: 100% (QA)

To calculate the annual dividends for each scenario we need to follow the given dividend policies and use the earnings per share data provided Lets go ... View the full answer