Your Firm Reported a Net Income of $500,000 and Is

Your firm reported a net income of $500,000 and is planning to finance a new capital budgeting project of $350,000 requiring $250,000 equity. If the firm pursues the residual theory of dividends policy, what is the amount of the dividend to be declared?

A) 0
B) $250,000
C) $150,000
D) $500,000