Kahn Inc. has a target capital structure of $65\%$ common equity and $35\%$ debt to fund its $$10$ billion in operating assets. Furthermore, Kahn Inc. has a WACC of $14\%,$ a before$-$tax cost

of debt of $10\%,$ 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 $$4,$ and the current stock price is $$35.$

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{.}1$ 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

$\%$