Adamson Corporation is considering four average-risk projects with the following costs and rates of return: Expected Rate of Return Project 1 Cost $2,000 3,000 16.00% 15.00 2 3 5,000 13.75 4 2,000 12.50 The company estimates that it can issue debt at a rate of ra = 11%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $6.00 per year at $46.00 per share. Also, its common stock currently sells for $29.00 per share; the next expected dividend, D, is $2.75; and the dividend is expected to grow at a constant rate of 6% 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 places. Cost of debt: 8.25 % Cost of preferred stock: 13.04 % % Cost of retained earnings: b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. %