Harvey's Industrial Plumbing Supply's Target Capital Structure Consists of 40

Harvey's Industrial Plumbing Supply's target capital structure consists of 40% debt and 60% equity.Its capital budget this year is forecast to be $650, 000.It also wants to pay a dividend of $225, 000.If the company follows the residual dividend policy, how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance?

A) $584, 250
B) $615, 000
C) $645, 750
D) $678, 038
E) $711, 939