Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $1.8 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here: Project H (high risk): Cost of capital = 16% IRR = 18% Project M (medium risk): Cost of capital = 10% IRR = 8% Project L (low risk): Cost of capital = 8% 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 $4,500,000. If Lane establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to 2 decimal places. STOCK REPURCHASES Gamma Industries has net income of $700,000, and it has 1,655,000 shares of common stock outstanding. The company's stock currently trades at $32 a share. Gamma is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market at the current $32 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do not round intermediate calculations. Round your answer to the nearest cent