Divac Company has developed a statement of stockholders' equity for the year 2016 as follows: 1 2 Balance, Jan 1 3 Stock issued 4 Net income 5 5 Cash dividend 6 Stock dividend 7 Balance, Dec

Divac Company has developed a statement of stockholders' equity for the year 2016 as follows: 1 2 Balance, Jan 1 3 Stock issued 4 Net income 5 5 Cash dividend 6 Stock dividend 7 Balance, Dec. 31 Divac Company Statement of Stockholders' Equity Preferred Paid In Common Stock Capital - Stock Preferred $100,000.00 $50,000.00 $420,000.00 0.00 0.00 80,000.00 0.00 0.00 D.DO 0.00 0.00 0.00 8.000,00 4,000.00 0.00 $108,000.00 $54,000.00 $500,000.00 Paid In Retained Capital - Common Eamings $42,000.00 $180,000.00 8,000.00 0,00 0.00 200,000.00 0.00 (50,000.00 0.00 (12,000.00) $50,000.00 $318,000.00 Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $5 per share. Required: 1. Determine the dividend payout ratio for the common stock. 2. Determine the book value per share of Divac's common stock. Questions 1. Determine the dividend payout ratio for the common stock. Additional Instruction Dividend payout ratio Points: 0/1 Feedback 2. Determine the book value per share of Divac's common stock. Additional Instruction Book value $ per share Points: 0/1