Problem:
Crypton Electronics has a capital structure consisting of 35% common stock and 65% debt. A debt issue of 1,000 par value, 6.5% bonds that mature in 15 years and pay a annual interest will sell for $973. Common stock of the firms is currently seilling for $30.97 per share and the fir, expects to pay $2.26 dividend next year. Dividends have grown at the rate of 5.2% per year and are expected to continue to do so for the foreseeable future.
Required:
Question: What is Crypton's cost of capital where the firm's tax rate is 30%.
Note: Please show guided help with steps and answer.