Company capital structure consists of debt

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WACC and Percentage of Debt Financing

Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock currently pays a $4.00 dividend per share (D0 = $4.00). The stock's price is currently $28.75, its dividend is expected to grow at a constant rate of 4% per year, its tax rate is 40%, and its WACC is 14.85%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places. ________%

Reference no: EM131980798

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