=+LG 2 E14–2 Staff Excellence Enterprises identified two independent projects to enhance staff training programs. The investments would require financing of $750,000 and

$980,800, respectively. Retained earnings are $1.3 million, and the firm has a capital structure with 40% debt and 60% equity. What dividends, if any, can be paid out by applying the residual theory? Calculate the resulting dividend payout ratio.