Vandelay Industries Inc. has a target capital structure of 50% common equity and 50% debt and is looking to fund $5 billion in capital projects for the next year. Vandelay Industries has a target WACC of 11%, bonds that sell at par with a coupon rate of 10% and a tax rate of 25%. The company hopes their retained earnings will be adequate to fund the equity portion of Vandelay's capital budget. Vandelay expects to pay a year-end dividend of $3.50 and their common stock currently sells for $32. (5 points) a. What is Vandelay's growth rate? b. Vandelay expects net income for the year to be approximately $520 million and they anticipate paying out 40% of those earnings in dividends. What is Vandelay's breakpoint in retained earnings