Torrence Inc $$\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array}$$

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? $$\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array}$$

A) $183,264
B) $192,909
C) $203,063
D) $213,750
E) $225,000