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7. Feinstein 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 $6 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 X: Cost of capital = 14%; IRR = 16% Project Y: Cost of capital = 12%; IRR = 10% Project Z: Cost of capital = 15%; IRR = 17% Feinstein intends to maintain its 25% debt and 75% common equity capital structure, and its net income is expected to be $10,000,000. If Feinstein maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? (8)