Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $1.5 million i

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Quantitative Problem: Lane Industries isconsidering 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 presentedhere:
Note that the projects' costs of capital vary because theprojects have different levels of risk. The company's optimalcapital structure calls for 40% debt and 60% common equity, and itexpects to have net income of $4,000,000. If Lane establishes itsdividends from the residual dividend model, what will be its payoutratio? Round your answer to two decimal places. %