Ferman Corporation Had Net Income of $140,000 and Paid Dividends

Multiple Choice

Ferman Corporation had net income of $140,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2020.Ferman Corporation's common stockholders' equity at the beginning and end of 2020 was $870,000 and $1,130,000, respectively.Ferman Corporation's payout ratio for 2020 was

A) 4.0%.
B) 42.9%.
C) 28.6%.
D) 14.3%.