Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $3 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 = 13%	IRR = 15%
Project M (medium risk):	Cost of capital = 11%	IRR = 9%
Project L (low risk):	Cost of capital = 6%	IRR = 7%

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 $4,200,000. If Lane establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places.

Gamma Industries has net income of $1,700,000, and it has 1,660,000 shares of common stock outstanding. The company's stock currently trades at $31 a share. Gamma is considering a plan in which it will use available cash to repurchase 15% of its shares in the open market at the current $31 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.