Walsh Company is considering three independent projects, each of which requires a $4 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 = 16%	IRR = 20%
Project M (Medium risk):	Cost of capital = 12%	IRR = 13%
Project L (Low risk):	Cost of capital = 8%	IRR = 12%

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 $8,602,500. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places.