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Adamson Corporation is considering four average-risk projects with the following costs and rates of return:...

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Adamson Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue dabt at a rate of ra = 10%, and its tax rate is 250 . It can issue preferred stock that pays a conatant dividend of $7.00 per year at $47.00 per share. Also, its common stock currently sells for $41.00 per share, the next expected dividend, Di, is 53.75 ; and the dividend is expected to grow at a constant rate of 6% per year. The target copital structure consists of 75%6 common stock, 15% preferred stock, 8. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal placel. Cost of debt: Cost of preferred stock: Cost of retained earnings: b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. c. Only projects with expected returns that exceed WAcC will be accepted. Which profects should Adamson accept? Project 1 Project 2 Project 3 Project 4

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