Kahn Inc. has a target capital structure of 70% common equity and 30% debt to fund its $8 billion in operating assets. Furthermore, Kahn Inc. has a WACC of capital budget. Its expected dividend next year (D1) is $2, and the current stock price is $27. 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 $1.7 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 %