Wiley Chemical Company, a manufacturer of specialty chemicals used in industrial manufacturing and increasingly in technology applications. Wilson has a long-term record of gradually increasing earnings and dividends. Wiley's board has approved capital spending of US$15 million to be entirely funded out of this year's earnings. Here are some highlights of the company financials: Book value of equity Shares outstanding 12-month trading range Current share price After-tax cost of borrowing Estimated full year earnings US$750 million (US$30 a share) 25 million US$25-US$35 US$35 7% US$25 million US$9 million Last year's dividends Target capital structure (market value) 35% debt, 65% equity Assume that Wiley Chemical funds its capital spending out of its estimated full year earnings. If Wiley uses a residual dividend policy, determine Wiley's implied dividend payout ratio.