Fauver Industries plans to have a capital budget of $700,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $175,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance? a. $437,500 b. $455,000 c. $595,000 d. $420,000 e. $805,000