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 $3 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: Cost of capital = 18%; IRR = 20% Project B: Cost of capital = 13%; IRR = 9% Project C: Cost of capital = 7%; IRR = 8% Dreebyshaw intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $14,500,000. 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. %