Kahn Inc. has a target capital structure of 65% common equity and 35% debt to fund its $8 billion in operating asus. Furthermore, Kln Inc. has a WACC of 12%, 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 (0) $2, 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 declent 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 a dividends? Do not round Intermediate calculations. Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate - (1 - Payout ratio) ROE 9