The projected capital budget of Kandell Corporation is $700,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $700,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

Select the correct answer.

a. $420,168

b. $419,832

c. $420,000

d. $419,916

e. $420,084