What is coleman’s cost for up to $300,000 of newly issued common stock, re1? what happens to the cost of equity if coleman sells more than $300,000 of new common stock? i. explain in words why new common stock has a higher percentage cost than retained earnings. j. (1) what is coleman’s overall, or weighted average, cost of capital (wacc) when retained earnings are used as the equity component?

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?