A company considers projects 1, 2 and 3 requiring initial capital outlays of $ 250,000, $ 300,000 and $ 450,000 respectively. The company finances its investments 45% by debt and the rest by equity. Profits for the year amount to $ 950,000. If the company has a residual dividend policy, determine the total amount paid in dividends to shareholders?

Options:

• $ 550,000
• $ 500,000
• $ 950,000
• $ 450,000
• $ 400,000