Ronaldo Inc. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts this years net income to be $1,000,000. If the company follows a residual dividend policy, what will be its dividend payout ratio?

	a.	20%
	b.	30%
	c.	50%
	d.	40%