Company capital structure consists of debt

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Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 10%, and its common stock currently pays a $3.25 dividend per share (D0 = $3.25). The stock's price is currently $32.25, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 25%, and its WACC is 13.90%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132402838

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