Determine cryton cost of capital


Crypton electronic has structure including 42% common stock and 58% debt. A debt issue of $1000 for each value, 6.1% bonds which mature in 15 years and pay annual interest will sell for $979. Common stock of firm is currently selling for $30.86 for each share and the firm expects to pay a $2.21 dividend next year. Dividends have grown at the rate of 4.7% per year and are expected to continue to do so for the for the foreseeable future. Determine Cryton's cost of capital where the firms tax rate is 30%?

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Mathematics: Determine cryton cost of capital
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