1. Optimum Inc. has the following quarterly earnings (Net Income) projections. The company retains 60% of its earnings and follows a stable dividend policy each year. What is the dividend for the 2^nd quarter? 1^st quarter = $650,000; 2^nd quarter = $800,000; 3^rd quarter = $550,000; 4^th quarter = $1,000,000.

a. $220,000

b. $260,000

c. $300,000

d. $320,000

e. $400,000