Walsh Company is considering three independent projects, each of which requires a $6 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented below: ProjectH(Highrisk):Costofcapital=16%IRR=21% Project M (Medium risk): Cost of capital =14% 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 capltal structure calls for 55% debt and 45% common equity, and it expects to have net income of $7,506,000. 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. Open spreadsheet If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places. Residual dividend model Firm's Capital Structure Woights: \begin{tabular}{ll} \hline \% debt in capital structure, we & 55.00% \\ % common equity in capial structure, we. & 45.00% \\ Net income & $7,506,000 \end{tabular} Calculation of Capital Budget: \begin{tabular}{cc} Project & Include in Budget (Y/N) Investment Cost \\ \hline M (High Risk) & \\ LMedium Risk) \\ Total Capital Budget \end{tabular} Calculation of Capital Budget Financed with Common Equity: Common equity required Formulas Calculation of Common Dividends Using Residual Model: Common dividends Calculation of Dividend Payout Ratio: Dividend payout ratio