Kahn Inc. has a target capital structure of $45\%$ common equity and $55\%$ debt to fund its $$9$ billion in

operating assets. Furthermore, Kahn Inc. has a WACC of $15\%,$ a before$-$tax cost of debt of $11\%,$ 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 $(D_1)$ is $$4,$ and the current stock price is

$$34.$

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\mathrm{.}9$ 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 Payout ratio