Residual dividend model

Walsh Company is considering three independent projects, each of which requires a $3 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented below:

Project H (High risk):	Cost of capital = 17%	IRR = 22%
Project M (Medium risk):	Cost of capital = 13%	IRR = 12%
Project L (Low risk):	Cost of capital = 8%	IRR = 10%

Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 35% debt and 65% common equity, and it expects to have net income of $13,509,500. If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places.