Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $375,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

Select the correct answer.

a. $4,980

b. $3,320

c. $1,660

d. $0

e. $6,640