What is that market interest rate on Colemans debt and its component cost of debt?

COLEMAN TECHNOLOGIES INC. 10-22 COST OF CAP oup. Before proceeding with the expansion, the u are an assistant to Jerry Lehman, the financial cost of capital. Lehman has provided you with COST OF CAPITAL Coleman Technologies is considering a major expan roposed by the company's information technology Group. Before proces gles is considering a major expansion program that has been company must estimate its cost of capital. Sunnase vou are an assistant to Jerry vice president. Your first task is to estimate Coleman's past of capital. Lehman the following data, which he believes may be relevant to your task. The firm's tax rate is 25%. The current price of Coleman's 12% coupon, semiannual payment, noncallatie remaining to maturity, is $1.153.72. Coleman does not use short-term, interest-bearingue maturity, is $1,153.72 Colum, semiannual payment, noncallable bonds with 15 years permanent basis. New bonds would be privately placed with no flotan tation cost. The current price of the firm's 10%, $100.00 par value, quarterly dividend, perpe stock is $111.10. Coleman's common stock is currently selline for $50.00 ner share. Its last aivan rently selling for $50.00 per share. Its last dividend (D) 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 est 57%, and the market risk premium is estimated to be 6%. For the bond-yield-plus-risk-premium approach, the firm uses a risk premium Coleman's target capital structure is 30% debt, 10% preferred stock, and 60% common equity. To structure the task somewhat, Lehman has asked you to answer the following questions: a. 1. What sources of capital should be included when you estimate Coleman's WACO 2. Should the component costs be figured on a before-tax or an after-tax basis 3. Should the costs be historical (embedded) costs or new (marginal) costs? b. What is the market interest rate on Coleman's debt and its component cost of debt