• Crypton Electronics - Cost of Capital

Crypton Electronics - Cost of Capital - 29 Aug, 2012

(Weighted average cost of capital) Crypton Electronics has a capital structure consisting of 42% common stock and 58% debt.  A debt issue of $1,000 par value, 6.1% bonds that mature in 15 years and pay annual interest will sell for $971. Common stock of the firm is currently selling for $29.84 per share and the firm expects to pay a $2.33 dividend next year.Dividends have grown at the rate of 4.9% per year and are expected to continue to do so for the foreseeable future.  What is Crypton's cost of capital where the firm's tax rate is 30%?  Crypton's cost of Capital is %. (Round to three decimal places)


Category : Financial Accounting

Search Keywords :
Crypton , Electronics , Cost , Capital , Debt , Equity , Dividends 

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Answer  - 29 Aug, 2012
Please see the excel attachment....

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