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What percentage of company capital structure consist of debt

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Question - Hook Industries capital structure consists solely of debt and common equity. It can issue debt at rd = 9%, and its common stock currently pays a $3.75 dividend per share (D0 = $3.75). The stock's price is currently $35.00, its dividend is expected to grow at a constant rate of 5% per year, its tax rate is 25% and its WACC is 13.25%. What percentage of the company's capital structure consists of debt?

Reference no: EM133169232

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