Divac Company has developed a statement of stockholders’ equity for the year 2017 as follows:

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.