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Wacc and percentage of debt financing

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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 = 12%, and its common stock currently pays a $3.75 dividend per share (D0 = $3.75). The stock's price is currently $28.25, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 35%, and its WACC is 12.20%. What percentage of the company's capital structure consists of debt?

Reference no: EM132404436

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