What is crytptons cost of capital


Crypton Electronics has a capital structure consisting of 41% common stock and 59% debt. A debt issue of $1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $973. Common stock of the firm is currently selling for $30.37 per share and the firm expects to pay a $2.28 dividend next year. Dividends have grown at the rate of 4.9% per year and are expected to continue to do so for the foreseeable future. What is crytptons cost of capital where the firms tax rate is 30%?

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Finance Basics: What is crytptons cost of capital
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