Bel Online Structured Activity: WACC and optimal capital budget Adamon Corporations considering four average risk projects with the following couts and rates of return Project Gost Expected late of Return 1 $2.000 16.00% 2 3,000 15.00 3 5,000 13.75 4 2.000 12.50 The company estimates that it can be debt at a rate ofta and its tax rates 30%. It can issue preferred stock that pays constant dividend of $ per year at S42 per share. A common stock currently sells for $35 per share the neat expected dividend. D. $3.00 and the dividend is expected to grow at a constant rate of ? per year. The target capital structure comits of 75% common stock, 15% dutt and 10 preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. x Open spreadsheet What the cost of each of the capital componente? Round your univers stwo decimal places. Do not round your intermediate calculation Cost of debit ist of preferred stock Cost of tearing 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 earnings b. What is Adamson's WACC Round your answer to two decimal places. Do not round your intermediate calculations. c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamon accept? Project 1 Project 2 Project 3 Project 4