The company has the following data:

Year EAT number of shares outstanding

2016 $ 12 million 10 million

2017 $ 16 million 10 million shares

2018 $ 20 million, 10 million shares

2019 $ 18 million 10 million shares

a.If the company sets a constant dividend policy (constant pay out ratio of 60%),

What is the dividend amount per share per year?

b. If the company sets a regular dividend of $ 1.2 each year, what would be the profit

arrested annually?

c. If the company sets a regular dividend of $ 1.2 and a maximum retained profit of $ 5 million per

year, how much extra dividend per sheet per year?

d. If you are a shareholder, which dividend policy is chosen? Tell