Finance-WACC AND PERCENTAGE OF DEBT FINANCING Hook Industries’s capital structure

Hi Shrugal, can you answer this question and post your methodology? I do not remember Algebra and I believe this problem includes the need. I do need to understand how the answer is arrived at or I will not be able to pass these kinds of questions on the final exam. If you can’t answer the question, are you able to release it for someone else? Thanks.P10-11:WACC AND PERCENTAGE OF DEBT FINANCING Hook Industries’s 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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