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Adamson Corporation is considering four average - risk projects with the following costs and rates of return: Project Cost Expected Rate of Return 1 $
Adamson Corporation is considering four averagerisk projects with the following costs and rates of return: Project Cost Expected Rate of Return $ The company estimates that it can issue debt at a rate of rd and its tax rate is It can issue preferred stock that pays a constant dividend of $ per year at $ per share. Also, its common stock currently sells for $ per share; the next expected dividend, D is $; and the dividend is expected to grow at a constant rate of per year. The target capital structure consists of common stock, debt, and preferred stock. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places. Cost of debt: Cost of preferred stock: Cost of retained earnings: What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept? Project Select Project Select Project Select Project Select
Adamson Corporation is considering four averagerisk projects with the following costs and rates of return:
Project Cost Expected Rate of Return
$
The company estimates that it can issue debt at a rate of rd and its tax rate is It can issue preferred stock that pays a constant dividend of $ per year at $ per share. Also, its common stock currently sells for $ per share; the next expected dividend, D is $; and the dividend is expected to grow at a constant rate of per year. The target capital structure consists of common stock, debt, and preferred stock.
What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places.
Cost of debt:
Cost of preferred stock:
Cost of retained earnings:
What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places.
Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept?
Project
Select
Project
Select
Project
Select
Project
Select
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