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

Residual Distribution Policy Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target captal seructure that is 55% debt and 45% equity. The compary forecosts that its net inceme this year will be $600,000. If the compacy follons a recifual distribution modat and pays all distributions as dividends, what will be its poyout ratio? Round your answer to two decimal places. (96)