Excel Online Structured Activity: Residual dividend model Walsh Company is considering three independent projects, each of which requires a $4 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented below: Project H (High risk): Cost of capital = 16% IRR = 18% Project M (Medium risk): Cost of capital = 13% IRR = 12% Project L (Low risk): Cost of capital = 8% = IRR = 11% Note that the projects' costs capital vary be projects ve different levels The company's optimal capital structu 50% debt and 50% common equity, and it expects to have net income of $12,842,000. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. x Open spreadsheet If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places. 44.19 %