Selected data for the MK Company follow:

Current Year Prior Year

Preferred shares, $8\%,$ par value $$50$ $$250,000$ $$250,000$

Common shares, par value $$10$ $$500,000$ $$500,000$

Retained earnings at end of year $$257,000$ $$240,000$

Net income $$102,000$ $$90,000$

Dividends paid on preferred shares $$20,000$ $$20,000$

Dividends paid on common shares $$65,000$ $$60,000$

Quoted market price per common share at year end $$25\mathrm{.}00$ $$20\mathrm{.}00$

The dividend payout ratio for the prior year was:

Multiple Choice

$85\mathrm{.}7\%.$

$114\mathrm{.}3\%.$

$140\mathrm{.}0\%.$

$55\mathrm{.}6\%.$