WACC and Cost of Common Equity Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its S9 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 11%, and a tax rate of 40%. 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 $29. a. What is the company's expected growth rate? Round your answer to two decimal places at the end of the calculations. b. If the firm's net income is expected to be $1.9 billion, what portion of its net income is the firm expected to pay out as dividends:? (Hint: Refer to Equation below.) Growth rate-(1 Payout ratio)ROE Round your answer to two decimal places at the end of the calculations