What is cyrptons cost of capital at the firms for rate

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Crypton Electronics has a capital structure consisting of 41% common stock and 59%debt. a debt issue of $1000 par value 6.1% bonds that mature in 15 years and pay intrest will sell for $977. Common stock of the firm is currently selling for 29.31 per share and the firmexpects to pay a $2.25 dividend next year. Dividends have grown at a rate of 4.8% per year and are expected to contribute to do so for foressable future. What is Cyrpton's cost of capital where the firm's for rate is 30% .

Reference no: EM13327927

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