Walsh Company is considering three independent projects, each of which requires a $5 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here: Project H (high risk): Cost of capital =15% IRR =20% Project M (medium risk): Cost of capital =11% IRR =13% Project L (low risk): Cost of capital =7% IRR =8% Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 60% debt and 40% common equity, and it expects to have net income of $13,309,500. If Walsh establishes its dividends from the residual dividend model what its payout ratio? Round your answer to two decimal places. %