Currently the firm has total market value of debt $30 million and total market value of equity $45 million. This capital structure is considered optimal by the management. The optimal capital budget for new investment for the coming period is determined to be $20 million. The total net income is estimated to be $30 million. The firm has 5 million common shares outstanding. The firm pays dividends based on the residual policy. What would the dividend payout ratio be? a. .60 b. 50 c .80 d. 70