What percentage of company capital structure consist of debt, Corporate Finance

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What percentage of company capital structure consist of debt

Problem

Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 12%, and its common stock currently pays a $4.00 dividend per share (D0 = $4.00). The stock's price is currently $28.50, its dividend is expected to grow at a constant rate of 6% per year, its tax rate is 25%, and its WACC is 16.00%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations.

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