Residual dividend model: payout ratio

McClelland Industries has a capital budget of $1,500,000, but it wants to maintain a target capital structure of 30% debt and 70% equity. The company expects to pay a dividend of $450,000. If the company follows a residual dividend policy, what is its forecasted dividend payout ratio?

30.00%

33.33%

37.50%

40.00%

42.55%