Over the prior year, Kang's Pizza Shop had net income of $2 million and paid a dividend of $0.20 per share. The firm has 500,000 shares outstanding and the current market price of Kang's stock is $5.00 per share. Calculate the firm's dividend payout ratio and dividend yield.

a. Dividend Payout Ratio = 5%; Dividend Yield = 10%

b. Dividend Payout Ratio = 10%; Dividend Yield = 4%

c. Dividend Payout Ratio = 6%; Dividend Yield = 5%

d. Dividend Payout Ratio = 4%; Dividend Yield = 5%

e. Dividend Payout Ratio = 5%; Dividend Yield = 4%

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