gnment: Module 5 Homework Assignment Score: 40.00% Save Submit Assignment for Grading tions Problem 10.15 (WACC and Cost of Common Equity) * Question 10 of 20 Check My Work (3 remaining) eBook Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $8 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt of 8%, 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 $2, and the current stock price is $30. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. 96 0 0 0 0 0 0 0 0 0 0 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 9 Check My Work (3 remaining) 0 Icon Key Problem 10.15 (WACC and Cost of Common Equity) Question 10 of 20