2019-04-02T11:11:58+00:00

Coleman Technologies is considering a major expansion program

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Coleman Technologies is considering a major expansion program that has been proposed by the company’s information technology group.  Before proceeding with the expansion, the company must estimate its cost of capital.  Assume that you are an assistant to Jerry Lehman, the financial vice president.  Your first task is to estimate Coleman’s cost of capital.  Lehman has provided you with the following data, which he believes may be relevant to your taskWhy is there a cost associated with retained earnings?


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