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

Project	Cost	Expected Rate of Return
1	$2,000	16.00%
2	3,000	15.00
3	5,000	13.75
4	2,000	12.50

The company estimates that it can issue debt at a rate of r_d = 11%, and its tax rate is 35%. It can issue preferred stock that pays a constant dividend of $5 per year at $59 per share. Also, its common stock currently sells for $38 per share; the next expected dividend, D₁, is $4.50; and the dividend is expected to grow at a constant rate of 4% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock.

What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations.

Cost of debt:

Cost of preferred:

Cost of retained earnings:

What is Adamson's WACC? Round your answer to two decimal places. Do not round your intermediate calculations.