Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $2.2 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:

Project H (high risk):	Cost of capital = 12%	IRR = 14%
Project M (medium risk):	Cost of capital = 9%	IRR = 7%
Project L (low risk):	Cost of capital = 10%	IRR = 11%

Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $3,500,000. If Lane establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places.

_______%