A firm has had the indicated earnings per share

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Reference no: EM13976310

A firm has had the indicated earnings per share over the last three years.

Year EPS

2003 $3.00

2002 $2.00

2001 $1.00

If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.

If the firm's dividend policy was based on a fixed dollar payout policy of 50 cents per share plus an extra dividend equal to 75 percent of earnings per share above $1.00, determine the annual dividend for each year.

Reference no: EM13976310

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