Use the following taken from Blix Company's December 31 year-end Financial Statements:

PreferredDividends

$50,000

NetIncome

$350,000

CashDividends to common stockholders

$100,000

January1 Common Stockholders' Equity

$3,000,000

December31 Common Stockholders' Equity

$4,000,000

PreferredShares Outstanding

80,000

CommonShares Outstanding

150,000

TotalLiabilities

$4,200,000

TotalAssets

$10,000,000

InterestExpense

$20,000

Incomebefore taxes and interest

$560,000

What is the Payout Ratio?

Select one:

a.

0.3333

b.

0.2857

c.

0.6667

d.

0.4286

e.

0.2041