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Encel Onine Structured Activity : WineC and optimat capital budget: AAamson Corporation is considerieg four average-risk projects with the following costs and rates of return:

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Encel Onine Structured Activity : WineC and optimat capital budget: AAamson Corporation is considerieg four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of re =1195, and its tax rate is 40%. It can issue preferred stock that pays a constant dividend of $4 per year at $42 per share. Aso, its common stock currently sets for $32 per share; the next expected dividend, D , is $3.25; and the dividend lis expected to grow at a constant rate of 6% per year, The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock, The dat has been coivected in the Nicrosoft Excel Online file below, Open the spreodsheet and perform the required analysis to answer the questions below, Open.spreadsheet a. What is the cost of esch of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations. Cost of debr Cost of preferred stock a. What is the cost af esch of the capital components? Pound your answers to two deolmat places. Do not round your intermediate calculations. Cost of debt Gest of preferrod stock Cost of retained earnings

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