The projected capital budget of Kandell Corporation is $900,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $900,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

Select the correct answer.

a. $540,067

b. $539,933

c. $539,799

d. $540,000

e. $539,866