Lucky Mike's, Inc. has a target debt/equity ratio of 0.75. After-tax earnings for 2012 were $850,000 and the firm needs a total of $1,150,000 for new investments. If the company follows a residual dividend policy, what dividend will be paid?

a. $0

b. $67,240

c. $192,857

d. $213,164

e. $862,500