XYZ Inc's total shareholders' equity is $2,268,820 on Dec 31, Year 3, and $2,692,730 on Dec 31, Year 4. Both balances include $416,290 of preferred shares balance. The preferred shares have a dividend rate of 3.61%. If the company's net income is $501,350 in Year 4, what is the company's common dividend payout ratio in Year 4? Assume there are no other transactions during the year in the equity balances other than the net income and the dividends.

a.

13.80%

b.

13.15%

c.

12.83%

d.

13.48%

e.

14.12%