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 $1,375,000. 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 $175,361 Stock issued $361

b. Dividends $175,000 Stock issued $0

c. Dividends $175,722 Stock issued $722

d. Dividends $175,181 Stock issued $181

e. Dividends $175,542 Stock issued $542