A company follows a strict residual dividend policy. It has a capital budget of $3,000,000 and a target capital structure that consists of 30% debt and 70% equity. Net income is forecast to be $3,500,000. Calculate the expected dividend payout amount. Show all work

A) $1,400,000

B) $2,100,000

C) $3,000,000

D) $900,000

E) $2,450,000