Hook industries capital structure consists solely of debt


Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 10%, and its common stock currently pays a $4.00 dividend per share (D0 = $4.00). The stock's price is currently $24.25, its dividend is expected to grow at a constant rate of 5% per year, its tax rate is 40%, and its WACC is 13.75%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.

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Financial Management: Hook industries capital structure consists solely of debt
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