Based on the case study i need following questions to be answered

Q1- Estimate the cost of capital components and the companys overall cost of capital (WACC) of Coleman Co., and compare it with the expected rate of return

Q2 - Critically analyze the feasibility of the project of Coleman Co., and conclude the analysis with a financing decision.

Coleman Technologies Inc. Coleman Technologies is considering a major expansion program that has been proposed by the company's information technology group. Before proceeding with the expansion, the company must estimate its cost of capital. Suppose you are an assistant to Jerry Lehman, the financial vice president. Your first task is to estimate Coleman's overall cost of capital (WAC). Mr. Lehman has provided you with the following data, which he believes may be relevant to your task. 1. The firm's tax rate is 40%. 2. The current price of Coleman's 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153.72. Coleman does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. 3. The current price of the fim's 10%, $100.00 par value, quarterly dividend, perpetual preferred stock is $111.10. 4. Coleman's common stock is currently selling for $50.00 per share. Its last dividend (Do) was $4.19, and dividends are expected to grow at a constant annual rate of 5% in the foreseeable future. Coleman's beta is 1.2, the yield on T-bonds is 7%, and the market risk premium is estimated to be 6%. For the bond-yield-plus-risk- premium approach, the firm uses a risk premium of 4%. 5. Coleman's target capital structure is 30% debt, 10% preferred stock, and 60% common equity. Coleman Technologies president wants you to submit a detailed analysis of this investment opportunity, advising the company whether this project is feasible, in the light of the available financing the company has (Note: the analysis must compare the cost of financing (WACC) with the expected return for a precise judgment.) Coleman Technologies Inc. Coleman Technologies is considering a major expansion program that has been proposed by the company's information technology group. Before proceeding with the expansion, the company must estimate its cost of capital. Suppose you are an assistant to Jerry Lehman, the financial vice president. Your first task is to estimate Coleman's overall cost of capital (WAC). Mr. Lehman has provided you with the following data, which he believes may be relevant to your task. 1. The firm's tax rate is 40%. 2. The current price of Coleman's 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153.72. Coleman does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. 3. The current price of the fim's 10%, $100.00 par value, quarterly dividend, perpetual preferred stock is $111.10. 4. Coleman's common stock is currently selling for $50.00 per share. Its last dividend (Do) was $4.19, and dividends are expected to grow at a constant annual rate of 5% in the foreseeable future. Coleman's beta is 1.2, the yield on T-bonds is 7%, and the market risk premium is estimated to be 6%. For the bond-yield-plus-risk- premium approach, the firm uses a risk premium of 4%. 5. Coleman's target capital structure is 30% debt, 10% preferred stock, and 60% common equity. Coleman Technologies president wants you to submit a detailed analysis of this investment opportunity, advising the company whether this project is feasible, in the light of the available financing the company has (Note: the analysis must compare the cost of financing (WACC) with the expected return for a precise judgment.)