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

Book Value of equity = US$750 million (US$30 per share)

Shares outstanding = 25 million

12-month trading range = US$25-35

Current share price = US$35

after-tax cost of borrowing = 7%

estimated full year earnings = US$25 million

last years dividend = US$9 million

Target Capital structure (market value) = 35% debt, 65% equity

Assume it fund's capital spending out of its estimated full year earnings. IF Wiley uses a residual dividend policy, determine Wiley's implied dividend payout ratio.