Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $1.5 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 = 12%	IRR = 14%
Project M (medium risk):	Cost of capital = 8%	IRR = 6%
Project L (low risk):	Cost of capital = 10%	IRR = 11%

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 distributions from the residual distribution model, what will be its payout ratio? Round your answer to two decimal places. %