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eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock
eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock currently pays a $2.75 dividend per share (Do = $2.75). The stock's price is currently $34.75, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 25%, and its WACC is 12.85%. 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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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
