Crane Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow.

Crane Medical Comparative Balance Sheet As of December 31
		2020		2019
Assets
Current assets
Cash		$ 395,000		$ 417,450
Accounts receivable, net		1,044,000		776,450
Inventory		717,000		681,100
Other current assets		381,300		247,000
Total current assets		2,537,300		2,122,000
Property, plant, & equipment, net		8,706,025		8,439,980
Total assets		$ 11,243,325		$ 10,561,980
Liabilities and Stockholders' Equity
Current liabilities		$ 3,182,000		$ 2,846,000
Long-term debt		3,702,600		3,892,650
Total liabilities		6,884,600		6,738,650
Preferred stock, $5 par value		59,000		58,950
Common stock, $0.25 par value		104,650		103,850
Retained earnings		4,195,075		3,660,530
Total stockholders' equity		4,358,725		3,823,330
Total liabilities and stockholders' equity		$ 11,243,325		$ 10,561,980

Crane Medical Comparative Income Statement and Statement of Retained Earnings For the Year
		2020		2019
Sales revenue (all on account)		$ 10,177,250		$ 9,614,000
Cost of goods sold		5,611,750		5,298,750
Gross profit		4,565,500		4,315,250
Operating expenses		2,840,300		2,634,200
Net operating income		1,725,200		1,681,050
Interest expense		300,350		308,650
Net income before taxes		1,424,850		1,372,400
Income taxes (30%)		427,455		411,720
Net income		$ 997,395		$ 960,680
Dividends paid
Preferred dividends		29,450		29,500
Common dividends		433,400		413,050
Total dividends paid		462,850		442,550
Net income retained		534,545		518,130
Retained earnings, beginning of year		3,660,530		3,142,400
Retained earnings, end of year		$ 4,195,075		$ 3,660,530

a. Calculate the price/earnings ratio (market price of $ 48 at year-end) for 2020

b. Calculate the dividend payout ratio (dividends of $ 1.25 per common share for the year) for 2020.