A firm expects to have net income of $5,000,000 during the next year. Its target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If the firm follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming years dividend, then what is the firms expected dividend payments?

		$1,100,000
		$3,900,000
		$5,000,000
		$6,000,000

Use info above to figure out and find the firms dividend payout ratio

		11%
		22%
		35%
		65%