Save Submit Assignment for Grading uestions Problem 10.15 (WACC and Cost of Common Equity) Question 10 of 20 Check My Work (2 remaining) 3. x eBook 1. 12. 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 16%, a before-tax cost of debt of 11%, 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 (D1) is $4, and the current stock price is $35. 13. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. 14. 25.47 % 15. 16. b. If the firm's net income is expected to be $1.3 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 17. 18. % 19. 20. Hide Feedback Incorrect Check My Work (2 remaining)