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Kahn Inc. has a target capital structure of 4 5 % common equity and 5 5 % debt to fund its $ 1 0 billion

Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 10%, and a tax rate of 25%. The company's retained earnings 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 $27.What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. %If the firm's net income is expected to be $1.5 billion, what portion of its net income is the firm expected to pay out as dividends? Do not round intermediate calculations. Round your answer to two decimal places. (Hint: Refer to Equation below.)Growth rate =(1- Payout ratio)ROE %

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