Iffert Corporation's Net Income Last Year Was $4,040,000

Multiple Choice

Iffert Corporation's net income last year was $4,040,000. The dividend on common stock was $6.40 per share and the dividend on preferred stock was $2.30 per share. The market price of common stock at the end of the year was $43.30 per share. Throughout the year, 300,000 shares of common stock and 100,000 shares of preferred stock were outstanding. The dividend payout ratio is closest to:

A) 0.50
B) 0.91
C) 1.02
D) 0.48