Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,300,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue?

Select the correct answer.

a. Dividends $100,483 Stock issued $483

b. Dividends $100,644 Stock issued $644

c. Dividends $100,161 Stock issued $161

d. Dividends $100,322 Stock issued $322

e. Dividends $100,000 Stock issued $0