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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

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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 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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