Question: Attempts Do No Harm / 1 7. Problem 10.11 (WACC and Percentage of Debt Financing) eBook Hook Industries's capital structure consists solely of debt and

Attempts Do No Harm / 1 7. Problem 10.11 (WACC and

Attempts Do No Harm / 1 7. Problem 10.11 (WACC and Percentage of Debt Financing) eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at ro = 8%, and its common stock currently pays a $4.00 dividend per share (Do = $4.00). The stock's price is currently $25.50, its dividend is expected to grow at a constant rate of 5% per year, its tax rate is 35%, and its WACC is 12.10%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places. % Grade it Now Save & Continue

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