Hook Industries has a capital structure that consists solely of debt and common equity. The company can issue debt at $11$ percent. Its stock currently pays a $$2$ dividend per share $($Do $=$$$2,$ and the stock's price is currently $$24\mathrm{.}75.$ The company's dividend is expected to grow at a constant rate of $7$ percent per year; its tax rate is $35\%$; and the company estimates that its WACC is $13\mathrm{.}95$ percent. What percentage of company's capital structure consists of debt financing?

$20\%$

$40\%$

$60\%$

$80\%$