New and Improved (NAI) has a target capital structure of 50% equity and 50% debt to fund its $5 billion in capital. Furthermore, NAI has a WACC of 12.0 percent. Assume NAIs before-tax cost of debt is 8% , its tax rate is 30 percent and its retained earnings are adequate to fund the common equity portion of the capital budget. If the expected dividend next year is $4 and the current stock price is $40, what is the company's expected growth rate?