Urgent

Midterm Exam 1. Walton Company has a capital structure that consists solely of debt and common equity. The company can Issue debt at 12%. Its stock currently pays a $2 dividend per share, and the stock's stock price is currently $24.75. The company's dividend is expected to grow at a constant rate of 8% per year; it tax rate is 3596 and the company estimates that its WACC is 13.95%. What percentage of the company's capital structure consists of debt financing? (06)