ahn Inc. has a target capital structure of 40% common equity and 60% debt to fund its $11 bilion in operating assets. Furthermore, Kahn Inc. has a WacC of 16%, a befor ost of debt of 10%, and a tax rate of 25%. The company's retained eacnings are adequate to provide the common equity portion of its capital budget. Its expected dividend rear (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 decional places. b. If the firm's net income is expected to be $1.6 billion, What porbon of its net income is the firm expected to pay out as dividends? Do not round intermediate calculatio Round your answer to two decimal places (Hint: Refer to Equation below) Growth rate = (1- P Payout ratio) ROE