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ochreduck193Lv1
28 Sep 2019
20. Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $2.75 dividend per share (D0 = $2.75). The stock's price is currently $30.50, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 40%, and its WACC is 13.40%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.
20. Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $2.75 dividend per share (D0 = $2.75). The stock's price is currently $30.50, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 40%, and its WACC is 13.40%. What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.
Beverley SmithLv2
28 Sep 2019
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