Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 for SEC filings for TT. Find and use the most recent 10-Q or 10-K. What is the book value of long-term debt and the book value of equity as listed on the balance sheet?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Finance

Authors: Kirt C. Butler

3rd Edition

0324177453, 978-0324177459

More Books

Students also viewed these Finance questions