Divac Company has developed a statement of stockholders' equity for the year 2012 as follows:

Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $5 per share.
Required
1. Determine the dividend payout ratio for the common stock.
2. Determine the book value per share of Divac's common stock.

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Paid-In Preferred $50,000 Paid-In Common $40,000 Preferred CaptCommon CapitalRetained Earnings Stock Stock $400,000 100,000 Balance, Jan. 1 Stock issued Net income Cash dividend Stock dividend Balance, Dec. 31 $110,000 $100,000 $200,000 10,000 80,000 -45,000 -15,000 $220,000 10,000 5,000 $500,000 $50,000