Belmont Company has a capital budget of $2 million. The company wants to maintain a capital structure that is 35% debt and 65% equity. The company forecasts that its net income this year will be $2.5 million. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? a: 28% Ob 20% 52% d. 24% De 30%