Kahn Inc. has a target capital structure of 55% common equity and 45% debt to fund its $12 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16% a before tax cost of debt of The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D_) is $4 and the current stock price in $26. a. What is the company's expected growth rate? 8.31 % b. 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? Growth rate = (1 - payout ratio)ROE 64.95 %