Harris Company must set its investment and dividends policies for the coming year. It has three independents projects from which to choose, each of which requires a $3million investment. These projects have different levels of risk and therefore different cost of capital. Their projected IRRs and cost of capital as follows:

PROJECT A	Cost of capital= 17%	IRR=20%
PROJECT B	Cost of capital= 13%	IRR=10%
PROJECT C	Cost of capital= 7%	IRR=9%

Harris intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $4,750,000. If Harris maintains its residual dividend policy, What will its payout ratio be?

The correct answer is 17.89% but i cant get there. please show all the math.