Kahn Inc. has a target capital structure of 40% common equity and 60% debt to fund its $12 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 8%, and a tax rate of 40%. 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 $32.

1. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. %
3. If the firm's net income is expected to be $1.9 billion, what portion of its net income is the firm expected to pay out as dividends? (Hint: Refer to Equation below.) Growth rate = (1 - Payout ratio)ROE Do not round intermediate calculations. Round your answer to two decimal places. %