Shivapuri Resorts has a capital budget of Rs 15 million this year. The company wants to maintain a target capital structure that is 60% debt and 40% equity. The company forecasts that its net income this year will be Rs 10 million. If the company follows a residual dividend policy:

Will the company be able to declare dividend? If so, what will be the amount of dividend?

what will be the dividend payout ratio?