ABC Corporation has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $500,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

a.40.00%

b.40.41%

c.45.00%

d.47.37%

e.54.55%