Adamson Corporation is considering four average-risk projects with the following costs and rates of return: Project Cost Expected Rate of Return 16.00% 1 $2,000 3,000 15.00 5,000 13.75 4 2,000 12.50 30%. It can issue The company estimates that it can issue debt at a rate of rd 9%, and its tax rate grow at a constant rate of 5 % per year . The target capital structure consists common stock currently sells for $33 per share; the next expected dividend, D1, is $4.00; and the preferred stock that pays a constant dividend of $4 per year at $46 per share. Also, its dividend expected of 75% common stock, 15% debt, and 10% preferred stock a. What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations. Cost debt Cost preferred stock retained eamings Cost b. What is Adamson's WACC? Round your answer to two decimal places. Do nat round your intermediate calculations. % c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept? -Select- Project 1 Project 2 -Select- -Select- Project 3 -Select- Project 4