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2005-2012-shown-following-ta-q60415127

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Expert Answer

Option A

Year EPS Option A

50% if EPS positive

2005 $ 0.44 $ 0.22

1/5
 2006 $ 1.00 $ 0.50

2007 $ 0.60 $ 0.30

2008 $ 1.05 $ 0.53

2009 $ (0.85) $-

2010 $ 1.20 $ 0.60

2011 $ 1.56 $ 0.78

2012 $ 1.40 $ 0.70

Option B

Year EPS Increase/ Option B

Decrease in
EPS

Basic = 0.5 0.06 per share only if Increase Total

per share in last 2 years is above 0.9

2005 $ NA $ 0.50 NA $
0.44 0.50

2006 $ $ 0.56 $ 0.50 NA $

1.00 0.50

2007 $ $ (0.40) $ 0.50 $- $

0.60 0.50

2008 $ $ 0.45 $ 0.50 $- $

1.05 0.50

2009 $ $ (1.90) $ 0.50 $- $

(0.85) 0.50

2010 $ $ 2.05 $ 0.50 $- $

1.20 0.50

2011 $ $ 0.36 $ 0.50 $ 0.06 $

1.56 0.56

2012 $ $ (0.16) $ 0.50 $ 0.06 $

1.40 0.56

Option C

Year EPS Increase/ Option C

Decrease in
EPS

2/5
 If Earnings < or If Earnings > $1, Divd = Total
= $1, Divd = 0.5 0.5 + 60% of excess of $1

2005 $ NA $ 0.50 $- $
0.44 0.50

2006 $ $ 0.56 $ 0.50 $- $

1.00 0.50

2007 $ $ (0.40) $ 0.50 $- $

0.60 0.50

2008 $ $ 0.45 $- 0.5 + (60% of 0.05) = 0.53 $

1.05 0.53

2009 $ $ (1.90) $ 0.50 $- $

(0.85) 0.50

2010 $ $ 2.05 $- 0.5 + (60% of 0.2) = 0.62 $

1.20 0.62

2011 $ $ 0.36 $- 0.5 + (60% of 0.56) = 0.836 $

1.56 0.84

2012 $ $ (0.16) $- 0.5 + (60% of 0.4) = 0.74 $

1.40 0.74

Option D

Year EPS Increase/ Option D

Decrease in
EPS

If Earnings < or If Earnings > $1.1, Divd = Total

= $1.1, Divd = 0.5 + 60% of excess of
0.5 $1.1

2005 $ NA $ 0.50 $- $
0.44 1.00

2006 $ $ 0.56 $ 0.50 $- $

1.00 1.00

2007 $ $ (0.40) $ 0.50 $- $

0.60 1.00

2008 $ $ 0.45 $ 0.50 $- $

1.05 1.00

2009 $ $ (1.90) $ 0.50 $- $

(0.85) 1.00

2010 $ $ 2.05 $- 0.5 + (60% of 0.1) = 0.56 $

1.20 1.06

3/5
 2011 $ $ 0.36 $- 0.5 + (60% of 0.46) = 0.776 $
1.56 1.34

2012 $ $ (0.16) $- 0.5 + (60% of 0.3) = 0.68 $

1.40 1.24

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