Acme, Inc. has net earnings of $2.1 billion this year. It has 700 million shares of common stock outstanding, and it paid 25 cents per share per quarter this year as a dividend. Which of the following is correct?

a. The retention ratio equals 33.33%.

b. The payout ratio equals 12.5%.

c. The payout ratio equals 33.33%.

d. The payout ratio equals 66.67%.