Question: Year EPS ($) 2012 2.02 2013 3.02 2014 1.45 2015 5.07 2016 1.05 Which of the following procedures would produce higher dividends to stockholders over

Year EPS ($) 2012 2.02 2013 3.02 2014 1.45 2015 5.07 2016 1.05

Which of the following procedures would produce higher dividends to stockholders over this five-year period?

a. Paying out dividends at a fixed ratio of 34 % of EPS. b. Paying out dividends at a fixed rate of $1.45 per share.

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