(3marks ii.The XYZ Company is considering three independent projects, each of which requires a RM5 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented below Project Level of risk Internal rate of return (%) Cost of capital (%) H High Medium 16 20 12 30 L Low 8 9 Note that the projects' cost of capital vary because the projects have different levels of risk The company's optimal capital structure calls for 50 per cent debt and 50 per cent ordinary shares. XYZ expects to have net income of RM7,287,500. If XYZ bases its dividends on the residual model, what will be its payout ratio? (6 marks)