DPaul IncForecasts a Capital Budget of $775,000

D.Paul Inc.forecasts a capital budget of $775,000.The CFO wants to maintain a target capital structure of 45% debt and 55% equity,and she also wants to pay a dividend of $650,000.If the company follows the residual dividend model,how much income must it earn,and what will its dividend payout ratio be?

A) $1,087,013;59.80%
B) $1,097,775;59.21%
C) $871,763;74.56%
D) $1,076,250;60.39%
E) $861,000;75.49%