17.89
Residual Distribution Policy (17.89 is a given answer. I am not sure how to schow my work.)
Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each
of which requires a $3M investment. The projects have different levels of risk and therefore different costs of capital. Their projected IRRs and costs
of capital are as follows:
Project A:	Cost of Capital = 17%; IRR 20%
Project B:	Cost of Capital = 13%; IRR = 10%
Project C:	Cost of Capital = 7% IRR = 9%
Harris intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $4750000. If Harris maintains
its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be?

p' t7