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

Project Cost Expected Rate of Return

1 $2,000 16.00%

2 3,000 15.00

3 5,000 13.75

4 2,000 12.50

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 of debt:

Cost of preferred stock:

Cost of retained earning:

b. What is Adamson's WACC? Round your answer to two decimal places. Do not round your intermediate calculations.