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Business, 16.07.2019 19:50 bettybales1986

Kahn inc. has a target capital structure of 60% common equity and 40% debt to fund its $9 billion in operating assets. furthermore, kahn inc. has a wacc of 13%, 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 $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. 5.82 % if the firm's net income is expected to be $1.0 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

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