The capital budget of Braxton, Inc. is $5,000,000. The company wants to maintain a target capital structure that is 35% debt and 65% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?

-$250,000

$250,000

$1,750,000

$3,500,000

None of the above.