Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $113.50, but flotation costs will be 9% of the market price, so the net price will be $103.29 per share. What is the cost of the preferred stock, including flotation Round your answer to two decimal places Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $12 billion in operating assets. Furthermore, Kahn Inc. has a WACC or 16%, a before-tax cost of debt of 8%, 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 $25. 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 $1.1 billion, what portion of its net income as the firm expected to pay out as dividends? Do not round Intermediate calculations, Round your answer to two decimat places. (Hint: Refer to Equation below.) Growth rate - (1. Payout ratio) ROE