DPaul IncForecasts a Capital Budget of $700,000

D.Paul Inc.forecasts a capital budget of $700,000.The CFO wants to maintain a target capital structure of 45% debt and 55% equity,and she also wants to pay a dividend of $350,000.If the company follows the residual dividend model,how much income must it earn,and what will its dividend payout ratio be?

A) $742,350;47.15%
B) $639,450;54.73%
C) $801,150;43.69%
D) $735,000;47.62%
E) $911,400;38.40%