Problem 10-11 WACC and Percentage of Debt Financing Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $4.00 dividend per share (D0 = $4.00). The stock's price is currently $23.75, its dividend is expected to grow at a constant rate of 5% per year, its tax rate is 40%, and its WACC is 12.90%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.