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 12%, a before-tax cost of debt of 8%, and a tax rate of 25%. The company's retained earings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D) is $2, and the current stock price is $25. 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 $1.2 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 M