Walsh Company is considering three independent projects, each of which requires a $3 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented below: Cost of capital 16% IRR 22% Project H (High risk): IRR 11% Cost of capital 13 % Project M (Medium risk): IRR 10% Cost of capital -7 % Project L (Low risk): 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 $4,745,000. 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. X 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