The Following Information Pertains to Marsh Company What Is Marsh's Payout Ratio?
A) 60

Multiple Choice

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. $$\begin{array} { l r } \text { Total asset } & \$ 400,000 \\\text { Stockholders' equity-common } & 200,000 \\\text { Total stockholders' equity } & 280,000 \\\text { Sales revenue } & 120,000 \\\text { Net income } & 25,000 \\\text { Number of shares of common stock } & 8,000 \\\text { Common dividends } & 9,000 \\\text { Preferred dividends } & 6,000\end{array}$$ What is Marsh's payout ratio?

A) 60%.
B) 36%.
C) 24%.
D) 7.5%.