Excel Online Structured Activity: Residual dividend model 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 below: \begin{tabular}{lll} Project H (High risk): & Cost of capital =15% & IRR =19% \\ Project M (Medium risk): & Cost of capital =12% & IRR =13% \\ Project L ( Low risk): & Cost of capital =8% & IRR =12% \end{tabular} 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 $7,607,500. 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. Open spreadsheet If watsh establishes its dividends from the residual dividend model, what will be its Davout ratio? Round vour answer to two decimal 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 $7,607,500. 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. 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: Residual dividend model \begin{tabular}{lr} Each project's investment cost & $5,000,000 \\ \hline Cost of capital - Cost of capitalM & 3,00% \\ \hline IRR MRRL & 1,00% \end{tabular} 6 7 \begin{tabular}{|ccc|} \hline Project & Cost of Capital & Internal Rate of Return \\ \hline H (High Risk) & 15.00% & 19.00% \\ M (Medium Risk) & 12.00% & 13.00% \\ L (Low Risk) & 8.00% & 12.00% \end{tabular} 11 12 Firm's Capital Structure Weiphts 13% debt in caplal structure, w1 14% common equity in copltal structure, wo 15 16 Net income 17 18 Calculation of Capital Budget: $7.607,500 Formulas