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 below: Project H (High risk): Cost of capital = 15% IRR = 20% Project M (Medium risk): Cost of capital = 11% IRR = 12% Project L (Low risk): Cost of capital = 7% IRR = 11% Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 50% debt and 50% common equity, and it expects to have net income of $10,954,500.

If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places. fill in the blank 2 %