WACC and Percentage of Debt Financing Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at r_d = 10%, and its common stock currently pays a $2.00 dividend per share (D_o = $2.00). The stock's price is currently $20.25, its dividend is expected to grow at a constant rate of 8% per year, its tax rate is 35%, and its WACC is 14.20%. What percentage of the company's capital structure consists of debt?.