A company expects to have net income of $3,100,000 during the next year. Its target capital structure is 30% debt and 70% equity. The company has determined that the optimal capital budget for the coming year is $3,000,000. If Davis follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming years dividend, then what is Davis's dividend payout ratio?

		A. 50.0%
		B. 33.3%
		C. 26.7%
		D. 16.0%