Crypton electronics has a capital structure consisting of

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Crypton Electronics has a capital structure consisting of 44% common stock and 56% debt. A debt issue of $1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $979. Common stock of the firm is selling for $30.83 per share and the firm expects to pay a $2.29 dividend next year.

Dividends have grown at pay of 5.2% 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 30%

Reference no: EM13616449

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