Kahn Inc. has a target capital structure of 70% common equity and 30% debt to fund its $9 billion in operating assets. F

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Kahn Inc. has a target capital structure of 70% common equity
and 30% debt to fund its $9 billion in operating assets.
Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt
of 12%, 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 $33.
What is the company's expected growth rate? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
If the firm's net income is expected to be $1.4 billion, what
portion of its net income is the firm expected to pay out as
dividends? Do not round intermediate calculations. Round your
answer to two decimal places. (Hint: Refer to Equation below.)
Growth rate = (1 - Payout ratio)ROE
%