Crypton cost of capital


Cryton Electronics has a capaital structure consisting of 36% common stock and 64% debt. A debt issue of $1000 par value, 6.2% bonds that mature in 15 years and pay annual interest will sell for $974.Common stock of the firm is currently selling for $29.85 per share and the firm expects tp pay a $2.16 dividend next year. Dividends have grown at a rate of 5.2% per year and are expected to continue to do so for the forseeable future. What is Crypton's cost of capital where the firm's tax rate is 30%.

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Finance Basics: Crypton cost of capital
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