P13-6 (similar to) Question Help 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 35%, 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. Earnings 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 35% payout for each year. Year 2016 Year 2019 2018 2017 EPS $3.28 $2.78 $2.43 EPS $3.14 $2.08 $1.22 2015 2014 a. The payout ratio for year 2014 on the basis of the regular $0.50 dividend and the cited EPS is %. (Round to one decimal place.)