Recher Corporations common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the companys balance sheet for several years. The total stockholders equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.

The companys dividend payout ratio is closest to: (Round your intermediate calculations to 2 decimal places.)

• 1.3%

• 1.7%

• 17.1%

• 26.3%