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A company follows a strict residual dividend policy. It has a capital budget of $3,250,000 and a target capital structure that consists of 25% debt.

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A company follows a strict residual dividend policy. It has a capital budget of $3,250,000 and a target capital structure that consists of 25% debt. Net income is forecast to be $2.5mil. Calculate the expected dividend payout amount. Select one: a. $63,000 O b. $2,438,000 O c. $3,250,000 d. $813,000 e. $1,875,000

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