What percentage of the companys capital structure consists

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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 $2.50 dividend per share (D0 = $2.50). The stock's price is currently $32.50, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 40%, and its WACC is 14.50%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.

Reference no: EM13255492

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