Selected Data for the Boat Rental Company Follow -What Was the Dividend Payout Ratio for the Prior Year

Multiple Choice

Selected data for the Boat Rental Company follow:
$\begin{array} {|l | r | r | } \hline & \text { Current Year } & \text { Prior Year } \\\hline \begin{array} { l } \text { Preferred Shares, 8\% Par } \\\text { Value } \$ 50\end{array} & \$ 250000 & \$ 250000 \\\hline \begin{array} { l } \text { Common Shares, Per Value } \\\$ 10\end{array} & \$ 500000 & \$ 500000 \\\hline \begin{array} { l } \text { Retained Earnings at End of } \\\text { Year }\end{array} & \$ 257000 & \$ 240000 \\\hline \begin{array} { l } \text { Net Income } \\\end{array}&\$ 102000 & \$ 90000\\\hline \begin{array} { l } \text { Dividends Paid on Preferred } \\\text { Shares }\end{array} &\$20000&\$20000 \\\hline \begin{array} { l } \text { Dividends Paid on Common } \\\text { Shares }\end{array} & \$ 55000 & \$50000 \\\hline \begin{array} { l } \text { Quoted Market Price per } \\\text { Common Share at Year End }\end{array} & \$ 25 & \$20 \\\hline\end{array}$

-What was the dividend payout ratio for the prior year?

A) 55.6%.
B) 71.4%.
C) 114.3%.
D) 140.0%.