How do I solve this and what is rhe correct answer?

Residual Distribution Policy Petersen Company has a capital budget of $1.8 million. The company wants to maintain a target copital structure that is 60% debt and 40% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? Round your answer to two decimal places