8-A company has a capital budget of $925,000 for next year, and wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $575,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

a) 18.45%

b) 22.11%

c) 29.64%

d) 35.65%

e) 41.36%

NEED to see the work and formulas PLZ. Will rate! :)