Fauver Industries Plans to Have a Capital Budget of $600,000

Fauver Industries plans to have a capital budget of $600,000.It wants to maintain a target capital structure of 40% debt and 60% equity,and it also wants to pay a dividend of $200,000.If the company follows the residual dividend model,how much net income must it earn to meet its investment requirements,pay the dividend,and keep the capital structure in balance?

A) $560,000
B) $683,200
C) $515,200
D) $632,800
E) $621,600