Kruger Industrial Smoothing has a target capital structure of 60% common equity and 40% debt and is looking to fund $5 billion in capital projects for the next year. Kruger has a target WACC of 11.5%, bonds that sell at par with a coupon rate of 9% and a tax rate of 40%. The company hopes their retained earnings will be adequate to fund the equity portion of Kruger's capital budget. Kruger expects to pay a year-end dividend of S3.50 and their common stock currently sells for S32. 4. (6 points) a. What is Kruger's growth rate? Kruger expects net income for the year to be approximately $525 million and they anticipate paying out 45% of those earnings in dividends. What is Kruger's breakpoint in retained earnings? b