Benchmark Metrics Inc. (BMI), an all-equity financed firm, reported EPS of $ 4.59 in 2013. Despite the economic downturn, BMI is confident regarding its current investment opportunities. But due to the financial crisis, BMI does not wish to fund these investments externally. The Board has therefore decided to suspend its stock repurchase plan and cut its dividend to $ 0.64 per share (vs. almost $2 per share in 2012), and retain these funds instead. The firm has just paid the 2013 dividend, and BMI plans to keep its dividend at $ 0.64 per share in 2014 as well. In subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target 42 % dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of 65 0%