Blandon Corporation has 100,000 common shares and 10,000, $1 preferred shares currently issued. During the year, the company paid and declared a 10% stock dividend when the market price of the common shares was $7.75. As well, the company paid the preferred dividend and paid $80,000 in cash to the common shareholders. If Blandon earned $360,000 during the year, its payout ratio is what?