10-CC (Homework from EOC Problems) ck to Assignment Attempts Average/2 12. Problem 10.15 (WACC and cost of common Equity) eBook Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $12 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before-tax cost of debt of 10%, 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 (D) is $3, and the current stock price is $34 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 $1.9 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 Grade it Now Save & Continue Continue without saving