What would be crypton cost of capital

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Crypton Electronics has a capital structure consisting of 35% common stock and 65% debt. A debt issue of $1,000 par value, 6.1% bonds that mature in 15 years and pay annual interest will sell for $978. Common stock of the firm is currently selling for $29.44 per share and the firm expects to pay a $2.17 dividend next year. Dividends have grown at the rate of 5.1% 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: EM13276184

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