9. Problem 10.14 (Cost of Preferred Stock Including Flotation) Travis Industries plans to issue perpetusl preferred stock with an $11.00 dividend. The stock is currently selling for $65.50, but flotation costs will be s\% of the market price, so the net price will be 581.23 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places. 10. Problem 10.15 (WACC and Cost of Common Equity) Kahn Inc. has a target capital structure of 40% common equity and 60% debt to fund its $11 billion in operating assets. Furthermore, Kahn Inc. has a wacc of 16%, a before-ta cost of debt of 10%, and a tax rate of 25%. The company's retained eamings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D1) is $2, and the current stock price is $31. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's net income is expected to be $1.6 billion, what portion of its net income is the firm expected to pay out as dividends? Do not round intermediate calculation Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate =(1 - Payout ratio) ROE