Question
Subject WACC AND PERCENTAGE OF DEBT FINANCING Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at r d
Subject WACC AND PERCENTAGE OF DEBT FINANCING
Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 12%, and its common stock currently pays a $3.75 dividend per share (D0 = $3.75). The stock's price is currently $24.25, its dividend is expected to grow at a constant rate of 4% per year, its tax rate is 40%, and its WACC is 13.35%. 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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Applied International Finance
Authors: Thomas J O'Brien
1st Edition
1606497340, 9781606497340
