Keep the Highest / 3 Attempts B. Problem 10.15 (WACC and Cost of Common Equity) elook Kahn Inc. has a target capital structure of 40% common equity and 60% debt to fund its ss billion in Berating assets. Furthermore, Kahn Inc. has a WACC of 12%, a before tax cost of debt of 9%, 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 $29. 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