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 =9%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend o $5.00 per year at $60.00 per share. Also, its common stock currently sells for $51.00 per 5 hare; the next expected dividend, Di, is $5.25; and the dividend is expected to grow at a constant rate of 7% per year. The target capital structure consists of 75% comrnon stock, 15% debt, and 10% preferred stock. 3. 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: % b. What is Adamson's WACC? Do-not round intermediate calculations. Round your answer to two decimal places. c. Only projects with expected retums that exceed WACC will be accepted. Which projects should Adamson accept? Project 1 Project? Project 3 Project 4 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 =9%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend o $5.00 per year at $60.00 per share. Also, its common stock currently sells for $51.00 per 5 hare; the next expected dividend, Di, is $5.25; and the dividend is expected to grow at a constant rate of 7% per year. The target capital structure consists of 75% comrnon stock, 15% debt, and 10% preferred stock. 3. 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: % b. What is Adamson's WACC? Do-not round intermediate calculations. Round your answer to two decimal places. c. Only projects with expected retums that exceed WACC will be accepted. Which projects should Adamson accept? Project 1 Project? Project 3 Project 4