The projected capital budget of Kandell Corporation is $750,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $750,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

Select the correct answer.

a. $450,081

b. $450,000

c. $449,919

d. $449,756

e. $449,838