(13-9) RESIDUAL DISTRIBUTION POLICY Kanata Packers is considering three independent projects, each of which requires a \$2.5 million investment. These projects have different levels of risk and therefore different costs of capital. Their projected IRRs and cost of capital are as follows: The company's optimal capital structure calls for 40% debt and 60% common equity. The company expects to have net income of $4,200,000. If Kanata bases its dividends on the residual model (all distributions are in the form of dividends), what will its payout ratio be