What is cryptons cost of capital for the firms tax rate

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Reference no: EM13332741

Crypton Electronics has a capital structure consisting of 45% common stock and 55% debt. A debt issue of $1,000 par value, 6.2% bonds that mature in 15 years and pay annual interest will sell for $978. Common stock for the firm is currently selling for $29.48 per share and the firm expects to pay $2.16 dividened next year. Dividends have grown at the rate of 5.4% 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%.

Reference no: EM13332741

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