m Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2016 Segal paid dividends of $2.9 million on net income of $14.0 million. However, in 2017 earnings are expected to jump to $21 million, and Segal plans to invest $9.8 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2017 Segal will return to its previous 7% earnings growth rate. Its target debt ratio, which it plans to maintain, is 35%.

Calculate Segals total dividends for 2017 if Segal uses a pure residual policy with all distributions in the form of dividends.

A. $11,200,000 B. $17,570,000 C. $21,000,000 D. $14,630,000