XYZ plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 60% debt and 40% equity, and it also wants to pay a dividend of $225,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance?

Group of answer choices

485,000

584,250

615,000

645,000

none of the above