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:

Project H (High risk):Cost of capital = 17% IRR = 20%

Project M (Medium risk):Cost of capital = 15% IRR = 13%

Project L (Low risk):Cost of capital = 8% IRR = 11%

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 Each project's investment cost$6,000,000Cost of capital_H - Cost of capital_M2.00%IRR_M - IRR_L2.00%ProjectCost of CapitalInternal Rate of ReturnH (High Risk)17.00%20.00%M (Medium Risk)15.00%13.00%L (Low Risk)8.00%11.00%Firm's Capital Structure Weights:% debt in capital structure, w_d60.00%% common equity in capital structure, w_c40.00%Net income$5,193,000Calculation of Capital Budget:ProjectInclude in Budget (Y/N)Investment Cost