Question: of-Chapter Problems - The Cost of Capital Back to Assignment Attempts Keep the Highest/1 6. Problem 10.11 (WACC and Percentage of Debt Financing) E eBook

of-Chapter Problems - The Cost of Capital Back to Assignment Attempts Keep the Highest/1 6. Problem 10.11 (WACC and Percentage of Debt Financing) E eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at re 11%, and its common stock currently pays a $1.75 dividend per share (D- $1.75). The stock's price is currently $20.75, its dividend is expected to grow at a constant rate of 6% per year, its tax rate is 25%, and its WACC is 12.80%. 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 search this course Save & Continue Continue without saving

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