Quantitative Problem:Lane Industries is considering three independent projects, each of which requires a $3.0 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 = 13%IRR = 15%Project M (medium risk):Cost of capital = 10%IRR = 8%Project L (low risk):Cost of capital = 8%IRR = 9%

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 $3,900,000. If Lane establishes its distributions from the residual distribution model, what will be its payout ratio? Round your answer to two decimal places.