6. You are a member of financial analyst team at Coleman Technologies Inc. The firm is looking into a major expansion program and your part is to analyze the cost of capital for that project. You have collected the following information: a. Tax rate =30%. b. 15-year, 12% coupon, semi-annual payment non-callable bonds sell for $1,153.72. New bonds will be privately placed with no flotation cost. c. 10%,$100 par value, quarterly dividend, perpetual preferred stock sells for $90.90. d. Common stock sells for $50. D0 =$4.19 and g=5%. e. B=1.2;rRF=7%;RPM=6%. f. Bond-Yield Risk Premium =4%. g. Coleman Tech uses an average of the three calculations for the cost of equity h. Target capital structure: 25% debt, 10% preferred, 65% common equity