Low-regular and extra dividend policy Bennett Farm Equipment Sales, Inc. is in a cyclical business. The firm has a target payout ratio of 20%, but its board realizes that adhering to that ratio would cause fluctuating dividends. Therefore, the firm has declared a regular dividend of $0.60 per share per year with extra cash dividends when earnings justify them Earnings for the last several years are as follows a. Calculate the payout ratio for each year on the basis of the regular $0.60 dividend and the cited EPS b. Calculate the difference between the regular S0 60 dividend and a 20% payout for each year c. Bennett has established a policy of paying an extra $0.25 dividend when the difference between the regular dividend and a 20% payout is $1.00 or more. In which year would an extra dividend be paid? What would be done with the "extra" earnings that are not paid? d. The firm expects that future earnings per share will continue to fluctuate but will remain above $285 per share in most years. What factors should be considered in making a revisin to the amount pals as a regular dividend? If the firm revised the regular dividend, what new amount should it pay? Lasnaut ratio of 20%, but share per year wi - X and-extra dividem alia Donna Bimant Celon les dhering to that re s when earnings Data table the payout ratio the difference bet as established a (Click on the icon here in order to copy the contents of the data table below ould an extra divid into a spreadsheet) expects that future Year EPS Year EPS making a revisin 2022 $3.03 2019 $2.95 2021 $2.88 2018 $2.69 2020 $2.85 2017 51.43 yout is $1.00 or factors should be uld it pay? ut ratio for year 2 Print Done