Q Search this course Ch 10: End-of-Chapter Problems - The Cost of Capital XC Back to Assignment Attempts Keep the Highest / 2 13. Problem 10.15 (WACC and Cost of Common Equity) eBook Kahn Inc. has a target capital structure of 40% common equity and 60% debt to fund Its $11 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14% 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 (Di) is $4, and the current stock price is $29. a. 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 $1.2 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 96 Grade It Now Save & Continue Continue without sovint 9:49 PM UTB/2001 o a