Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $$5$ million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital $=18\%$; IRR $=22\%$ Project B: Cost of capital $=13\%$; IRR $=11\%$ Project C: Cost of capital $=6\%$; IRR $=10\%$ Harris intends to maintain its $35\%$ debt and $65\%$ common equity capital structure, and its net income is expected to be $$14,250,000.$ If Harris maintains its residual dividend policy $($with all distributions in the form of dividends$),$ what will its payout ratio be$?$ Round your answer to two decimal places. $\%$Residual Distribution Policy

Harris Company must set its investment and dividend policies for the coming year. It has three independent

projects from which to choose, each of which requires a $$3$ 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:

Harris intends to maintain its $35\%$ debt and $65\%$ common equity capital structure, and its net income is

expected to be $$12,500,000.$ If Harris maintains its residual dividend policy $($with all distributions in the form

of dividends$),$ what will its payout ratio be$?$ Round your answer to two decimal places.

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