Companys 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 = 8%, and its common stock currently pays a $3.00 dividend per share (D0 = $3.00). The stock's price is currently $26.00, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35%, and its WACC is 13.80%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.

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Reference no: EM13814642

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