Low-regular and extra dividend policy Bennett Farm Equipment Sales, Inc. is in a highly cyclical business. Although the firm has a target payout ratio of 20%, its board realizes that strict adherence to that ratio would result in a fluctuating dividend and create uncertainty for the firm's stockholders. Therefore, the firm has declared a regular dividend of $0.50 per share per year with extra cash dividends to be paid when earnings justify them. Eamings per share for the last several years are as follows: a. Calculate the payout ratio for each year on the basis of the regular $0.50 dividend and the cited EPS b. Calculate the difference between the regular $0.50 dividend and a 20% payout for each year. c. Bennett has established a policy of paying an extra dividend of 50.25 only when the difference between the regular dividend and a 20% payout amounts to $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 out? d. The firm expects that future earnings per share will continue to fluctuate but will remain above $2.71 per share in most years. What factors should be considered in making a revisin to the amount pais as a regular dividend? If the firm revises the regular dividend, what new amount should it pay? a. The payout ratio for year 2014 on the basis of the regular 50.50 dividend and the cited EPS is % (Round to one decimal place) an extra ature earni ount pais hat factor ar 2014 on (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) ice.) Year 2019 2018 2017 EPS $3.38 $3.05 $2.71 Year 2016 2015 2014 EPS $3.23 $2.66 $1.45 Print Done answer bo