Q3Company JC Electronics had a net income of $1,200,000 this year. The company has a target capital structure of 43% in debt and the rest in equity. The company is considering the following independent projects to invest for next year:

Project A: capital budget 500,000; cost of capital 15%; IRR 13%.

Project B: capital budget 600,000; cost of capital 14%; IRR 15%.

Project C: capital budget 1,000,000; cost of capital 15%; IRR 18%.

Assuming that the above projects are the only items to be budgeted for next year. What will be this year's dividend payout ratio?