Scanlon has the following investment opportunities:
Project A: Cost = $5 million; IRR = 20%
Project B: Cost = $5 million; IRR = 12 %
Project C: Cost = $5 million; IRR = 9%
Scanlon expects to have net income of $7,278,500. If Scanlon bases its dividend on the residual dividend policy, what will its payout ratio be?
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