A company with 50:50 debt-equity ratio earns a net income of Rs 50,000. What will be the pay-out ratio based on residual dividend theory, if it has two independent projects under consideration, each...

A company with 50:50 debt-equity ratio earns a net income of Rs 50,000. What will be the pay-out ratio based on residual dividend theory, if it has two independent projects under consideration, each of them requiring Rs 40,000 and one with 15% cost of capital and 20% IRR, while the other has 8% cost of capital and 10% IRR.