Welch 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 is presented below:

Project H (High risk):	Cost of capital = 15%	IRR = 18%
Project M (Medium risk):	Cost of capital = 12%	IRR = 10%
Project L (Low risk):	Cost of capital = 7%	IRR = 9%

Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $10,491,000. If Welch establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places.