Nba Company Has The Following Five Year Record Of Earnings Per Share Displayed Below 3290966

NBA Company has the following five-year record of earnings per share displayed below. Which of the following procedures would produce higher dividends to stockholders over this five-year period? Year EPS 2012 $1.35 2013 2.04 2014 0.91 2015 2.91 2016 0.69 a. Paying out dividends at a fixed ratio of 33% of EPS. b. Paying out dividends at a fixed rate of $0.91 per share.

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eps-q-1.docx