Walsh Company 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 below:

Project H (High risk):                Cost of capital = 17%                IRR= 22%

Project M (Medium risk):        Cost of capital = 13%                IRR= 12%

Project L (Low risk):                  Cost of capital = 8%                  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 25% debt and 75% common equity, and it expects to have net income of $14,770,000.

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