What is crytons cost of capital

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Crypton's has a capital structure consisting of 36% common stock and 64% debt. A debt issue of $1000 par value, 5.5% bonds that mature in 15 years and pay annual interest will sell for $977. Common stock of the firm is currently selling for $29.22 per share and the firm expects to pay $2.16 dividend next year. Dividends have grown at the rate at 5.4% per year and are expected to continue to do so for the forseeable future. What is Cryton's cost of capital where the firm's tax rate is 30%?

Reference no: EM13257984

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