AFB,IncHad Earnings Per Share of $4 Per Share Last Year

Multiple Choice

AFB,Inc.had earnings per share of $4 per share last year and paid a dividend of $1 per share.For the current year,AFB,Inc.generated earnings per share of $6 and paid a dividend of $1 per share.This is an example of what type of dividend policy?

A) constant dividend payout ratio
B) stable dollar dividend per share
C) small, regular dividend plus a year-end extra
D) payout ratio equal to zero