Question: This year, Apple has earned $ 1 0 0 million in profits. The year before, Apple earned $ 2 0 0 million in profits and

This year, Apple has earned $100 million in profits. The year before, Apple earned $200 million in profits and gave each shareholder a dividend of 20 cents per share. Two years ago, Apple earned $50 million in profits and gave each shareholder a dividend of 5 cents per share. This year, Apples board of directors:
Does not have to issue dividends because they are discretionary
Does have to issue dividends because they have established an annual frequency and valuation formula to its investors
Does not have to issue dividends because they earned less money than the prior year
Does not have to issue dividends because the calendar year has not ended

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