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Walsh Company is considering three independent projects, each ofwhich requires a $6 million investment. The estimated internal rateof return (IRR) and cost of capital for these projects arepresented below:Project H (High risk):Cost of capital = 16%IRR = 21%Project M (Medium risk):Cost of capital = 14%IRR = 11%Project L (Low risk):Cost of capital = 7%IRR = 9%Note that the projects' costs of capital vary because theprojects have different levels of risk. The company's optimalcapital structure calls for 45% debt and 55% common equity, and itexpects to have net income of $8,872,000. The data has beencollected in the Microsoft Excel Online file below. Open thespreadsheet and perform the required analysis to answer thequestion below.If Walsh establishes its dividends from the residual dividendmodel, what will be its payout ratio? Round your answer to twodecimal places.%