The following information pertains to Marigold Corp.. Assume that all balance sheet amounts represent average balance figures.

Total assets	$276000
Stockholders' equity-common	135100
Total stockholders' equity	220500
Sales revenue	112500
Net income	27000
Number of shares of common stock	6200
Common dividends	5000
Preferred dividends	6700

What is the payout ratio for Marigold?

18.5%

46.5%

26.5%

3.5%