D. Paul Inc. forecasts a capital budget of $725,000. The CFO desires to maintain target capital structure of 45% debt and 55% equity, and she also wants to pay a dividend of $600,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be? Net Income Payout $749,063 46.26% $998,750 60.08% $789,013 53.47% $808,988 73.29% $1,148,563 50.46%