Hook Industries capital structure consists of solely debt and equity. It can issue debt at rd = 11% and its common stock currently pays a dividend of $2 per share. The stock’s current price is $24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35% and its WACC is 13.95%. What percentage of the firm’s capital structure consists of debt?

Hook Industries capital structure consists of solely debt and equity. It can issue debt at rd = 11% and its common stock currently pays a dividend of $2 per share. The stock’s current price is $24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35% and its WACC is 13.95%. What percentage of the firm’s capital structure consists of debt?

Hook Industries capital structure consists of solely debt and equity. It can issue debt at rd = 11% and its common stock currently pays a dividend of $2 per share. The stock’s current price is $24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35% and its WACC is 13.95%. What percentage of the firm’s capital structure consists of debt?