Bunting Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2007. The weighted average number of shares outstanding in 2007 was 50,000 shares. Bunting Corporation's common stock is selling for $50 per share on the New York Stock Exchange.
Bunting Corporation's payout ratio for 2007 is:
a. $5 per share.
b. 25%.
c. 20%.
d. 12.5%.