David Rose Inc

David Rose Inc.forecasts a capital budget of $500,000 next year with forecasted net income of $400,000.The company wants to maintain a target capital structure of 30% debt and 70% equity.If the company follows the residual dividend policy, how much in dividends, if any, will it pay?

A) $42,869
B) $45,125
C) $47,500
D) $50,000
E) $52,500