Include explanation please.

1. Muelller Corporation is considering four average risk projects with the following costs and rates of return:

2. Project Cost Expected Rate of Return

3. 1 $3,000 15.5%

4. 2 $2,000 16.0%

   3 $4,000 12.5%

   4 $5,000 13.5%

   This corporation estimates that its debt rate will be r_d = 9%, and its tax rate is 30%. It can issue preferred stock that will pay a constant dividend of $5 per year at $45 per share. Also, its common stock is currently selling for $32 per share, and the next expected dividend (D₁), is $3.00. This dividend is expected to grow at a constant 6% per year. The target capital structure for Mueller Corporation consists of 75% common stock, 15% debt, and 10% preferred stock.

5. What is the cost of each of the capital components?
6. What is Muellers WACC?
7. Which projects should this corporation accept?