Pate Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity.

Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?