15.00 Adamson Corporation is considering four average-risk projects with the following costs and rates of return: Project Cost Expected Rate of Return $2,000 16.00% 3,000 5,000 13.75 2,000 12.50 The company estimates that it can issue debt at a rate of ro -9%, and its tax rate is 25%. It can Issue preferred stock that pays a constant dividend of $6.00 per year at $56.00 per share. Also, its common stock currently sells for $44.00 per share; the next expected dividend, s, is $5.25; and the dividend is expected to grow at a constant rate of 5% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. a. What is the cost of each of the capital components? Do not round Intermediate calculations. Round your answers to two decimal piaces. Cost of debt: 6.75 % Cost of preferred stock: % Cost of retain 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 projects should Adamson accept? Project Project 2 Project 3 Project 4 Accept Accept Reject Reject