Percentage of the company capital structure

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Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at r = 8%, and its common stock currently pays a $3.50 dividend per share (D = $3.50). The stock's price is currently $20.25, its dividend is expected to grow at a constant rate of 5% per year, its tax rate is 25%, and its WACC is 13.30%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM133114604

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