$10-18$ WACC and optimal capital budget Adams Corporation is considering four average$-$ risk projects with the following costs and rates of return: Project CostExpected Rate of Return $ $2,00050\%23,0004035,000302,00020$ The company estimates that it can issue debt at a before$-$tax $-$cost of r$\_\{$d$\}=5\%$ and its tax rate is $30$ percent. The company also can issue preferred stock $$100$ per share, which pays a constant dividend of $ $5$ per year. The company's common stock currently sells at $$40$ per share. The year$-$end dividend D$\_\{1\}$ is expected to be $ $5\mathrm{.}00,$ and the dividend is expected to grow at a constant rate of $5$ percent per year. The company's capital structure consists of $50$ percent common stock, $40$ percent debt, and $10$ percent preferred stock. $(50$ points$)1.$ What is the cost of each of the capital components? $2.$ What is Adam's WACC $3.$ Which projects should Adams accept?