3 nework Ch. 14 Check My Work (2 remaining) G. eBook 3. Problem Walk-Through Walsh Company is considering three independent projects, each of which requires a $5 million Investment. The estimated Internal rate of return (IRR) and cost of capital for these projects are presented here: Project H (high risk) Cost of capital = 17% IRR - 21% Project M (medium risk): Cost of capital = 15% IRR = 13% IRR = 9% Project L (low risk): Cost of capital = 7% Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 60% debt and 40% common equity, and it expects to have net income of $10,745,000. If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places. 27.14 % Hide Feedback x Incorrect