Business Finance
Macomb Community College Chapter 10 Coleman Technologies Inc Case Study

### Question Description

Can you help me understand this Business question?

Read the case and answer all those questions showing on the pictures. All the formula are giv

aecd_12ae_4b6b_9801_85d145a02fae.jpeg
cfd7d665_63fd_4814_8e86_e51a3c8ee7b2.jpeg
c262ef_9911_4725_941d_08e28076de61.jpeg

### Unformatted Attachment Preview

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

## Final Answer

Hello again,Attached please find the completed questions for your assignment. Please review this work at your earliest convenience and let me know if you have any questions or if you feel that anything needs to be changed. Otherwise, I look forward to working with you again in the near future.Thank you!

Running head: COLEMAN TECHNOLOGIES INC.

1

Coleman Technologies, Inc.
A. (1) What sources of capital should be included when you estimate Coleman’s WACC?
Because the weighted average cost of capital is typically concerned with long-term matters, it
would make sense to analyze whatever forms of capital are utilized in order to pay for assets that
last a long time. In the case of Coleman, this would be both common and preferred stock as well as
long-term debt in the form of bonds.
B. What is the market interest rate on Coleman’s debt and its component cost of debt?
As the below formula in Excel shows, the semiannual market interest rate of Coleman’s debt is 5%.

This would then need to be doubled to reach the annual market interest rate of 10%. Finally, the
component...

seyswho (483)
UT Austin
Review
Review

Anonymous
I was on a very tight deadline but thanks to Studypool I was able to deliver my assignment on time.

Anonymous
The tutor was pretty knowledgeable, efficient and polite. Great service!

Anonymous
I did not know how to approach this question, Studypool helped me a lot.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4