Seifert Company is considering three independent projects, each requiring $5 million in investment. The estimated internal rate of return (IRR) and cost of capital for these projects are shown in the following table: Project Cost of Capital IRR Project H 16.00% 19.00% Project M 10.00% 11.00% Project L 7.00% 5.00% The optimal capital structure for the company consists of 40.00% debt and 60.00% equity. The company expects to have net income of $7,500,000.00, and is seeking to estimate its dividend payout ratio if dividends are established from the residual dividend model. Seifert will accept projects where IRR>Cost of Capital By this criteria, projects H and M will be accepted. The required capital budget for these projects is Given the optimal percentage of equity, this means that of equity will be required to fund these projects. Which of the following most accurately describes the amount of dividends paid under the residual dividend model? Dividends=0 Dividends = Net Income - Retained earnings required to help finance new investments O Dividends = Net Income + Retained earnings required to help finance new investments O Dividends = Retained earnings required to help finance new investments - Net Income The dividend payout ratio is equal to Dividends Net Income Assume that Seifert uses the residual dividend model. Given your answers to the previous questions, Seifert's dividend payout ratio will be if it follows the residual dividend model