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Business, 02.12.2019 22:31 chrisroman152

Hook industries’ capital structure consists solely of debt and common equity. it can issue debt at rd = 11%, and its common stock currently pays a $2.00 dividend per share (d0 = $2.00). the stock’s price is currently $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 company’s capital structure consists of debt?

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