Residual Distribution Policy Druebyshaw 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 $6 milion 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 -16%; IRR - 21% Project B: Cost of capital = 14%; IRR -11% Project C: Cost of capital = 9%; IRR = 10% Dreebyshaw intends to maintain its 40% debt and 60% comman equity capital structure, and its net income is expected to be $11,000,000. If Dreebyshaw maintains its residual dividend polley with a distributions in the form of dividends), what will its payout ratio be? Round your answer to two decimal places