Kahn Inc. has a target capital structure of $65\%$ common equity and $35\%$ debt to fund its $$11$ billion in operating assets.

Furthermore, Kahn Inc. has a WACC of $16\%,$ a before$-$tax cost of debt of $8\%,$ 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 $$3,$ and the current stock price is $$30.$

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{.}4$ 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