If I had company that decided  its capital budget during the coming
year will be $20 million. If its optimal capital structure is 60
percent equity and 40 percent debt. Say I find out it's earnings
before interest and taxes (EBIT) are projected to be $34.667 million
for the year. The company has $200 million of assets; its average
interest rate on outstanding debt is 10 percent; and its tax rate is
40 percent. If the company follows the residual distribution policy
(with all distributions in the form of dividends) and maintains the
same capital structure, what will its dividend payout ratio be??