Kahn Inc. has a target capital structure of 55% common equity and 45% debt to fund...

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Kahn Inc. has a target capital structure of 55% common equityand 45% debt to fund its $8 billion in operating assets.Furthermore, Kahn Inc. has a WACC of 15%, a before-tax cost of debtof 8%, and a tax rate of 25%. The company's retained earnings areadequate to provide the common equity portion of its capitalbudget. Its expected dividend next year (D₁) is $2, andthe current stock price is $31.
What is the company's expected growth rate? Do not roundintermediate calculations. Round your answer to two decimalplaces.
%
If the firm's net income is expected to be $1.1 billion, whatportion of its net income is the firm expected to pay out asdividends? Do not round intermediate calculations. Round youranswer to two decimal places. (Hint: Refer to Equation below.)
Growth rate = (1 - Payout ratio)ROE
%

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Kahn Inc. has a target capital structure of 55% common equityand 45% debt to fund its $8 billion in operating assets.Furthermore, Kahn Inc. has a WACC of 15%, a before-tax cost of debtof 8%, and a tax rate of 25%. The company's retained earnings areadequate to provide the common equity portion of its capitalbudget. Its expected dividend next year (D1) is $2, andthe current stock price is $31.What is the company's expected growth rate? Do not roundintermediate calculations. Round your answer to two decimalplaces. %If the firm's net income is expected to be $1.1 billion, whatportion of its net income is the firm expected to pay out asdividends? Do not round intermediate calculations. Round youranswer to two decimal places. (Hint: Refer to Equation below.)Growth rate = (1 - Payout ratio)ROE %