Residual Distribution Policy Dreebyshaw Industries 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 $5 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 A: Project B: Project C: Cost of capital = 16%; Cost of capital = 12%; Cost of capital = 9%; IRR = 20% IRR = 11% IRR = 10% Dreebyshaw intends to maintain its 45% debt and 55% common equity capital structure, and its net income is expected to be $9,000,000. If Dreebyshaw maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? Round your answer to two decimal places.