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 12%, 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 (D1) is $3, and the current stock price is $32.

What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places.