Crypton electronics has a capital structure consisting of

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Crypton Electronics has a capital structure consisting of 36% common stock and 64% debt. A debt issue of $1,000 par value, 6.4% bonds that mature in 15 years and pay annual interest will sell for $980. Common stock of the firm is currently selling for $29.09 per share and the firm expects to pay a $2.34 dividend next year. Dividends have grown at the rate of 4.9% 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: EM13616456

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