What percentage of the company capital structure consists

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Question - Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $4.00 dividend per share (D0 = $4.00). The stock's price is currently $27.50, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 25%, and its WACC is 13.95%. What percentage of the company's capital structure consists of debt?

Reference no: EM133273920

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