Capital budget of a Project X is $750000. The target capital structure is 30% of debt and 70% of equity. The capital structure should be maintained. The forecasted net income is $500000.The company has a residual dividend policy

a) How much of the $ 500000 should be paid out as dividends?

b) If the net income increases by 25% what will be the dividends pay out?

c) What is the paid out ratio in a situation a) and b)?