A company's projected capital budget is $1,100,000, its target capital structure is 50% debt and 50% equity, and its forecasted net income is $700,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out and what is the payout ratio?

200,000; 28.57%

300,000; 42.86%

250,000; 35.71%

100,000; 14.29%

150,000; 21.43%