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Cigna, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Required Expected Rate
Cigna, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Required Expected Rate Project Investment of Return A $8 million 18.0% B 6 million 16.5% C 5 million 15.5% D 3 million 14.0% E 3 million 13.5% F 3 million 13.0% G 6 million 12.5% The firm's marginal cost of capital schedule is as follows: Amount of Funds Raised Cost $0 - $12 million 12.0% $12 million - $22 million 14.5% $22 million - $32 million 16.5% Over $32 million 18.5% Determine Cigna's optimal capital budget (in dollars) for the coming year. Question 16 options: $14 million $19 million $22 million $25 million
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