Kelly Varnsen, a junior financial analyst at Vandalay Industries, has been asked to calculate this year's dividend. Kelly has gathered the following data: CAPEX (spending on fixed assets) = $17,000 Increase in net working capital = $3,000 Target capital structure is 20% debt and 80% equity Net income is = $17,000. If Vandalay follows a residual dividend policy, then the dividend payout rate this year is:

		20%
		25%
		30%
		35%
		40%