The Capital Budget Forecast for the Santano Company Is $725

The capital budget forecast for the Santano Company is $725, 000.The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500, 000.If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?
Net Income Payout

A) $ 898, 750..55.63%
B) $ 943, 688 58.41%
C) $ 990, 872 61.34%
D) $1, 040, 415 64.40%
E) $1, 092, 436 67.62%