Presented Below Are Selected Data from the Financial Statements of DeBruce

Presented below are selected data from the financial statements of DeBruce Corp. for 2014 and 2013. $\begin{array}{lrr}&2014&2013\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \\\text { Earnings per share } & \$ 0.84 & \$ 0.74 \\\text { Shares of common stock outstanding } & 140,000 & 100,000\end{array}$ The dividend payout ratio for 2014 is

A) 0.382.
B) 0.05.
C) 0.28.
D) 0.50.