Activity: WACC and optimal caotal budpet

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Excel Onlifi Structured Actovity: WhOC ard opt$$nal esptal budam:

Adamson Corporatian is considering four averege$-$risk projets with the folaning sosts and rates of return:

$\backslash$table$[[$Project$,$Cost,Expected Rate of Return$],[1,$$$2,000,16\mathrm{.}000],[2,3,000,15\mathrm{.}00],[3,5,000,13\mathrm{.}75],[4,2,000,12\mathrm{.}50]]$

parform the required analysts to answe$-$ the cuectitus bodow.

Open spreadshect

Cast of debt $\%$

Cast of prefurred stock

Cost of retained earnings

b$.$ What is Adsmeon's Whec? Round your ancwar to two deamsl plsces. Do not round your intarmadiste calculaticre. $\%$

c$.$ Only projects with expected returns that exceed WACC wil ha accepted. Which projects stould Adamsch accept?

Project $1$

Project $2$

Project $3$

Project $4$