Getler Inc

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