Capital structure consists solely of debt and common equity

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WACC and Percentage of Debt Financing Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $2.00 dividend per share (D0 = $2.00). The stock's price is currently $33.75, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 35%, and its WACC is 12.15%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places. %

Reference no: EM131555227

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