D. Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?

	A	Net Income: $898,750 Payout: 55.63%
	B	Net Income: $943,688 Payout: 58.41%
	C	Net Income: $990,872 Payout: 61.34%
	D	Net Income: $1,040,415 Payout: 64.40%
	E	Net Income: $1,092,436 Payout: 67.62%