Torrence Inc $$\begin{array} { l r } \text { Capital budget } & \$ 1,025,000 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 665,000\end{array}$$

Multiple Choice

Torrence Inc.has the following data.If it uses the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r } \text { Capital budget } & \$ 1,025,000 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 665,000\end{array}$$
?

A) $316,200
B) $211,650
C) $234,600
D) $255,000
E) $193,800