Earmark, Co

Earmark, Co. has a policy of returning a minimum of 40 percent of earnings to shareholders every year through dividend issues and open-market stock repurchases. In each quarter this year, the company earned $0.35 per share. In each of the first three quarters the company paid a regular cash dividend of $0.10 per share. What combination of dividends could the company's board approve to meet their target payout percentage?

A) A regular cash dividend of $0.10 per share.
B) A regular cash dividend of $0.10 per share and an extra dividend of 0.56 per share.
C) A regular cash dividend of $0.10 per share and an extra dividend of $0.46 per share.
D) A regular cash dividend of $0.10 per share and an extra dividend of $0.16 per share.