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 15%, a before-tax cost of debt of 9%, 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 (Du) is $4. and the current stock price is $32. 1. 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 $1.2 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 (1. Payout ratio) ROE Check My Work (3 remaining) E eBook 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 15%, a before-tax cost of debt of 9%, 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) is $4, and the current stock price is $32. 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 $1.2 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 - (1 - Payout ratio)ROH % Check My Work (3 remaining)