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Crypton Cost of Capital




Question;Crypton electronic has a capital structure consisting of 42% common;stock and 58% debt. A debt issue of $1000 par value, 5.7% bonds that;mature in 15 years and pay annual interest will sell for 973. Common;stock of the firm. Is currently selling for 30.43 per share and the firm;expect to pay$2.25 dividend next year. Dividends have grown at the rate;of 5.1% per year and are expect to continue to do so for the;foreseeable future. What is Cryton's cost of capital where the firm's;tax rate is 30%? What is Crypton's cost of the capital? (round to three;decimal places)


Paper#44506 | Written in 18-Jul-2015

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