Kahn Inc. has a target capital structure of 4 5 % common equity and 5 5 %
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Kahn Inc. has a target capital structure of common equity and debt to fund its $ billion in operating assets. Furthermore, Kahn Inc. has a WACC of a beforetax cost of debt of and a tax rate of The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year D is $ and the current stock price is $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 $ 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 Payout ratioROE
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