Kahn Inc. has a target capital structure of $50\%$ common equity and $50\%$ debt to fund its $$8$ billion in operating

assets. Furthermore, Kahn Inc. has a WACC of $15\%,$ a before$-$tax cost of debt of $12\%,$ 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 $$2,$ and the current stock price is $$33.$

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{.}6$ 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$)$ ROE

$\%$