ABC expects to earn a Net Income of 170 million in 2020. The firms weighted average cost of capital is 15% and it follows its target capital structure of 40% debt and 60% equity. It is considering two investment projects that will expand its operations:

Project A requires an initial investment of 140 million and has an IRR of 12%.

Project B requires an initial investment of 180 million and has an IRR of 18%.

If the firm applies a residual dividend policy (and only invests in positive NPV projects), what will be its dividend payout ratio in 2020?