=+LG 4 P14–6 Low-regular-and-extra dividend policy Cromwall Laboratories has a target payout ratio of 60%. However, the board realizes that adhering strictly to the payout ratio will cause the dividend payout to fluctuate. Therefore, the board has declared a regular dividend of $0.75 per share per year while paying extra cash dividends if funds are available. Earnings per share for the period 2015 to 2020 are shown in the following table Year EPS Year EPS 2020 $3.50 2017 $2.40 2019 3.10 2016 2.35 2018 2.80 2015 1.95