Vaughn Manufacturing had net income of $100000 and paid dividends of $27650 to common stockholders and $25000 to preferred stockholders in 2020. Vaughn Manufacturings common stockholders equity at the beginning and end of 2020 was $495000 and $540000, respectively. Vaughn Manufacturings payout ratio for 2020 is

7.65%.

47.65%.

22.65%.

27.65%.