afore-tax cost of debt of 10\%5, and a tax rate of 25%. The mpany's retained earnings are adequate to provide the common equity portion of its capital budget. Its xpected dividend next year (D1) is $2, and the current stock price is $31. a. What is the company's expected arowth rate? Do not round intermediate calculations, Round your answer to two decimal places. b. If the firmis net Income is expected to be $1,6 biliton, what portion of its net income is the firm expected to gay out as dividends? Do not round intermediate calculations, found your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate (1 - Payout ratio ) ROt