Now it's time for you to practice what you've learned. Seifert Company is considering three Independent projects, each requiring $10 million in investment. The estimated Internal rate of return (IRR) and cost of capital for these projects are shown in the following table: IRR Project Project H Project M Project Cost of Capital 17.00% 16.00 19.00% 10.00% 12.0096 9.0096 The optimal capital structure for the company consists of 40.00% debt and 60.00% equity. The company expects to have net income of $15,000,000.00, and is seeking to estimate its dividend payout ratio if dividends are established from the residual dividend model Given the optimal percentage of equity, this means that The required capital budget for these projects is equity will be required to fund these projects. $13,000,000 56,000,000 Assume that Seifert uses the residual dividend model. $20,000,000 if it follows the residual dividend model Seifert's dividend payout ratio will be $12,000,000