Presented Below Are Selected Data from the Financial Statements of Provost

Multiple Choice

Presented below are selected data from the financial statements of Provost Corp. $\begin{array}{lrr}&2018&2017\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \\\text { Shares of common stock outstanding } & 140,000 & 140,000\end{array}$ The dividend payout ratio for 2018 is

A) 1.8%.
B) 30.0%.
C) 36.3%.
D) 38.0%.