Kahn Inc has a target capital structure of 60% common equity and 40% debt to fund its 10$ billion in operating assts. Kahn has WACC of 13%, a before tax cost of debt of 10%, and a tax rate of 40%. The company's retained earnings are adequete to provide the common equity portion of it's capital budget. Its expected dividend next year is 3$ and the current stock price is $35.

1) What is the company's expected growth rate?

2) If the firm's net income is expected to be $1.1 billion, what portion of its net income is the firm's expected to pay out as it's dividends?