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( Weighted average cost of capital ) Crypton Electronics has a capital structure consisting of 3 7 percent common stock and 6 3 percent debt.
Weighted average cost of capital Crypton Electronics has a capital structure consisting of percent common stock and percent debt. A debt issue of $ par value, percent bonds that mature in years and pay annual interest will sell for $ Common stock of the firm is currently selling for $ per share and the firm expects to pay a $ dividend next year. Dividends have grown at the rate of percent 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 percent?
a The aftertax cost of debt is Round to two decimal places.
b The cost of common equity is Round to two decimal places.
c Crypton's cost of capital is
Round to three decimal places.
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