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What percentage of the company capital structure consists

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Question - Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at r = 10%, and its common stock currently pays a $3.50 dividend per share (D = $3.50). The stock's price is currently $24.00, its dividend is expected to grow at a constant rate of 6% per year, its tax rate is 25%, and its WACC is 12.95%. What percentage of the company's capital structure consists of debt?

Reference no: EM133074079

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