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Please calculate: 1. Cost of debt 2. Cost of preffered stock 3. Cost of retained earnings 4. Adamsons WACC 5. which projects should adam accept

Please calculate:
1. Cost of debt
2. Cost of preffered stock
3. Cost of retained earnings
4. Adamsons WACC
5. which projects should adam accept image text in transcribed
image text in transcribed
Adamson Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of rd=10%, and its tax rate is 30%. It can issue preferred stock that pays a constant dividend of $4 per year at $51 per share. Also, its common stock currently selis for $36 per share; the next expected dividend, O1, is $4.00; and the dividend is 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 data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. structure consists of 75% common stock, 15% debt, and 10% preferred stock. The dsta has been collected in the Microsoft Excel Online file below. Open the soreadsheet and perform the required analysis to answer the questions below. Open spreadsheet 8. What is the eost of each of the capital components? Round your answers to two decimal pisces. Do not cound your intermediate calculations: Cost of debt % Cott of preferted stock % Cost of retained earnings b. What is Adamson's WACC Round your answer to two decimal ploces. Do not round your intermediate calculations: y. c. Only profects with expected returns that exceed WACC will be accepted. Which projects shoufd Adamson accept? Project 1 Prolect 2 Project 3 Project 4

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