1) Computation of Dividend Payout Ratio:

Dividend Payout Ratio = Cash Dividend / Net Income * 100

            = 37,000 / $66,000 * 100 = 56.06%

2) Computation of Book Value per Share of Divac's common stock:

Number of Shares for Preferred Stock = Total Value of Preferred Stock / Par Value Per Share of Preferred Stock = 110,000 /100 = 1,100

Liquidation Value of Preferred Stock = Number of Shares of Preferred Stock * Liquidation Price Per Share = 1,100 * 120 = 132,000

Total Stockholders Equity  = Preferred Stock + Paid in Capital Preferred + Common Stock + Paid in Capital Common + Retained Earnings = 11,000 + 55,000 + 500,000 + 50,000 + 214,000 = $830,000

Net Assets Applicable to Common Stock = Total Stockholders Equity ′ − Liquidation Value of Preferred Stock = 830,000 - 132,000 = 698,000

Number of Shares of Common Stock = Total Value of Common Stock /  Par Value Per Share of Common Stock = 500,000 / 4 = 125,000

Book Value Per Share = Net Assets Applicable to Common Stock / Number of Shares of Common Stock Net Assets Applicable to Common Stock = 698,000 / 100,000 = $6.98