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Business, 09.12.2019 22:31 boxergirl2161

Kahn inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in operating assets. furthermore, kahn inc. has a wacc of 16%, a before-tax cost of debt of 9%, and a tax rate of 40%. 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 $25.what is the company's expected growth rate? if the firm's net income is expected to be $1.4 billion, what portion of its net income is the firm expected to pay out as dividends? (hint: refer to equation below.) growth rate = (1 - payout ratio)roe

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Kahn inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in...
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