3. How and when should companies use the residual dividend model? Apply the model to the following data. A company expects to have a capital budget of $500,000 next year. The company wants to maintain a target capital structure with 40% debt and 60% equity, and its forecasted net income is $250,000. If the company follows the residual dividend model, how much in dividends, if any, will it pay? (10 pts)