D&P Co Has a Capital Budget of $2,000,000

D&P Co. has a capital budget of $2,000,000. The company wants to maintain a target capital structure that is 35% debt and 65% equity. The company forecasts that its net income this year will be $1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

A) $100,000
B) $200,000
C) $300,000
D) $400,000
E) $500,000