Iamson Corporation is considering four averaQE-rlsk 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 company estimates that it can issue debt at a rate of rd = 11%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $4.00 per year at $59.00 "share. Also, its common stock currently sells for $42.00 per share,- the next expected dividend, Di, is $4.25; and the dividend is expected to grow at a constant rate of 7% per Ir. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. a. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places. 0 \\ 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. \"/0 c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept? - Project 1 -Seiect- v Project 2 -Select- V Project 3 -Select- v Project 4 -Select- v