Adamson Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of rd=10%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $6.00 per year at $57.00 per share. Also, its common stock currently sells for $49.00 per share; the next expected dividend, D1, is $4.75; and the dividend is expected to grow at a constant rate of 7% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. 1. What is the cost of each of the capital components? - Cost of debt: - Cost of preferred stock: - Cost of retained earnings: 2. What is Adamson's WACC? 3. Which projects should Adamson accept