TAGE OF DEBT FINANCING Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at re 12%, and its common stock currently pays a $3.25 dividend per share (Do = $3.25). The stock's price is currently $34.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35%, and its WACC is 12.95% What percentage of the company's capital structure consists of debt? Do not round intermediate calculations, Round your answer to two decimal places. % Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 40%. The current stock price is Po - $20.50. The last dividend was Dp - $3.25, and it is expected to grow at a 8% constant rate. What Is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations. % b. WACC