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The projected capital budget of Kandell Corporation is $5,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is

The projected capital budget of Kandell Corporation is $5,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $5,550,000. The company has 10,000,000 outstanding shares. If the company follows a residual dividend policy, what dividends per share, if any, will it pay out?

A. $0.17

B. $0.20

C. $0.28

D. $0.36

E. None of the above

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