The following description is loosely based on a real company, but names and locations have been changed: You are working as a consultant for Green Team, Inc. (GT), an energy and construction company based in San Diego. GT was founded 10 years ago by Bill Rettman and Isabel Flores. Rettman and Flores met 21 years ago when both worked as engineering managers for San Diego Gas & Electric. GT provides energy efficient heating, ventilation and air conditioning (HVAC) solutions and other energy saving technology to a variety of corporate customers. Recently, GT has been exploring opportunities to expand its offerings to include large-scale systems for convention centers, government facilities and transit hubs. The company wants to bring in new investors to help fund their expansion. Bill and Isabel are wondering how to price additional shares. A key component of their analysis is an estimate of the required return for GT shareholders. Bill and Isabel want to use a publicly traded company as a benchmark and they have selected Trane Technologies plc (ticker TT) as one that closely reflects GTs business. 1 Your consulting assignment is to investigate the weighted average cost of capital for TT as well as examining certain other public companies as described below, and report back to Rettman and Flores.

Trane Technologies plc was formerly known as Ingersoll Rand. Although now headquartered in Ireland, Trane Technologies plc trades on the NYSE and the company issues 10-K and 10-Q reports. However, be careful to reference Trane Technologies plc and NOT any of the other public entities that have Trane in their titles.

Look at equity for TT. Go to finance.yahoo.com and enter the ticker symbol. What is the most recent stock price listed for TT? What is the market value of equity, also called market capitalization? How many shares of stock does TT have outstanding? What is the most recent quarterly dividend, if any (see Historical Data)? What is the annual dividend? What is the beta value for TT?