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Stacks Ltd maintains a 2/3 Debt to equity ratio and follows a residual dividend policy. The company has after-tax profits of R2 600 000 for

Stacks Ltd maintains a 2/3 Debt to equity ratio and follows a residual dividend policy. The company has after-tax profits of R2 600 000 for the year and needs R3 000 000 for new investments. What is the total amount that Stacks will pay out in dividends this year?

A R800 000

B R400 000

C R2 600 000

D R3 000 000

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