Company ABC has a capital structure that consists solely of debt and common equity. The company...

Company ABC has a capital structure that consists solely of debt and common equity. The company has issued 15-year, 12% semiannual coupon bond sells for $1,153.72. Its stock currently pays a $2 dividend per share and the stock’s price is currently $24.75. The company’s ROE is 15% and paying out 60% of its earnings.its tax rate is 35%; and the company estimates that its WACC is 13.95%. What percentage of the company’s capital structure consists of debt financing?

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