Getler Inc $\$ 514,425 \quad \$ 162,901$ B) $\$ 541,500 \quad \$ 171,475$

Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,000,000.If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue? Dividends Stock Issued

A) $\$ 514,425 \quad \$ 162,901$
B) $\$ 541,500 \quad \$ 171,475$
C) $\$ 570,000 \quad\$ 180,500$
D) $\$ 600,000 \quad\$ 190,000$
E) $\$ 0 \quad\quad\quad\quad\$ 200,000$