Problem:
Crypton Electronics has a capital structure of consisting of 40% common stock and 60% debt. A debt issue of $1,000 par value, 6.5% bonds that mature in 15 years and pay annual interest will sell for $976. Common stock of the firm is currently selling for $30.79 per share and the firm expects to pay a $2.29 dividend next year. Dividends have grown at the rate of 5.4% per year and are expected to continue to do so for the foreseeable future.
Required:
Question: What is Cryptons cost of the capital where the firm's tax rate is 30%?
Note: Please show guided help with steps and answer.