Santo Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2006. The weighted average number of shares outstanding in 2005 was 50,000 shares. Santo Corporation's common stock is selling for $40 per share on the New York Stock Exchange. Santo Corporation's price-earning ratio is: a. 2 times b. 8 times c. 10 times d. 5 times Santo Corporation's payout ratio for 2005 is: a. $5 per share b. 25% c. 20%. d. 12.5%