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6. Problem 10.11 (WACC and Percentage of Debt Financing) EB eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue

6. Problem 10.11 (WACC and Percentage of Debt Financing) EB eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at ro = 12%, and its common stock currently pays a $4.00 dividend per share (Do = $4.00). The stock's price is currently $31.25, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 25%, and its WACC is 13.95%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places. %

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