Hook Industries has a capital structure that consists solely of debt and common equity The company can issue debt at 11 percent Its stock currently pays a $2 dividend per share (D0 $2), and the stock 's price is currently $24 75 The company 's dividend is expected to grow at a constant rate of 7 percent per year its tax rate is 35 percent and the company estimates that its WACC is 13 95 percent What percentage of the company 's capital structure consists of debt financing

Question: Hook Industries has a capital structure that consists solely of debt and common equity. The company can issue debt at 11 percent. Its stock currently

Hook Industries has a that consists solely of debt and common equity. The company can issue debt at 11 percent. Its stock currently pays a $2 per share (D0 = $2), and the stock's price is currently $24.75. The company's is expected to grow at a constant rate of 7 percent per year; its tax rate is 35 percent; and the company estimates that its WACC is 13.95 percent. What percentage of the company's consists of debt financing?

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