7. Feinstein Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, cach of which requires a $5 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project X: Cost of capital = 19%; IRR = 16% Project Y: Cost of capital - 12%; IRR = 10% Project Z: Cost of capital -15%; IRR = 17% Feinstein intends to maintain its 30% debt and 70% common equity capital structure, and its net income is expected to be $4,250,000. If Feinstein maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? (8)