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

Project 1 Cost $2000 Expected Rate of Return 16.00%

Project 2 Cost $3000 Expected Rate of Return 15.00%

Project 3 Cost $5000 Expected Rate of Return 13.75%

Project 4 Cost $2000 Expected Rate of Return 12.50%

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 of $5.00 per year at $48.00 per share. Also, its common stock currently sells for $38.00 per share; the next expected dividend, D1, is $4.25; and the dividend is expected to grow at a constant rate of 5% 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? Do not round intermediate calculations. Round your answers to two decimal places.

A. Cost of debt:

B. Cost of preferred stock:

C. Cost of retained earnings: