Common stock of the firm is currently selling for 2901 per


Crypton Electronics has a capital structure consisting of 41% common stock and 59% debt. A debt issue of $100 0par value, 5.8% bonds that mature in 15years and pay annual interest will sell for $975. Common stock of the firm is currently selling for $29.01 per share and the firm expects to pay a $2.16 dividend next year. Dividends have grown at the rate of 4.8% per year and are expected to continue to do so for the foreseeable future. What is Crypton's cost of capital where the firm's tax rate is 30percent?

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Finance Basics: Common stock of the firm is currently selling for 2901 per
Reference No:- TGS01733973

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