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Kahn Inc. has a target captial structure of 6 5 % common equity and 3 5 % debt to fund its $ 1 0 billion

Kahn Inc. has a target captial structure of 65% common equity and 35% debt to fund its $10 billion in operating assets. Futhermore, Kahn Inc, has a WACC of 14%, 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 captial budget. Its expected divident next year (D1) is $4, and the current stock price is $35. a) What is the company's expected growth rate? Do not round intermediate calculations. Round answer to two decimals. B) If the firm's net income is expected to be $1.1 billion, what portion of its net income is the firm expected to pay out as dvidends? Do not round intermediate calculations. Round to two decimal places

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