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Coleman Technologies Inc. is planning to expand AGAINI You have collected the following information: 1. Tax rate =35%. 2. 20-year, 9% coupon, semiannual payment non-callable

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Coleman Technologies Inc. is planning to expand AGAINI You have collected the following information: 1. Tax rate =35%. 2. 20-year, 9% coupon, semiannual payment non-callable bonds sell for $1,153.72. New bonds will be privately placed with no flotation cost. 3. 9%,$100 par value, quarterly dividend, perpetual preferred stock sells for $90.00. 4. Common stock (P0) sells for $40.00 ( $44.44 less 10% flotation costs) 5. D0=$4.00 and g=5%. 6. Target capital structure: 35% debt, 10% preferred, 55% common equity

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