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The company estimates that it can issue debt at a rate of fd=11%, and its tax rate is 25%. It can issue areferred steck that

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The company estimates that it can issue debt at a rate of fd=11%, and its tax rate is 25%. It can issue areferred steck that pays a constant dividend of . 14.00 per year at 160.00 per share. Also, its common stock currentiy seils for 342.00 per share; the next expected dividend, Di, is 35.25; and the dividend is expected to grow at a constant rate of 4% per year, 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 ploces. Cost of debt: Cost of preferred stock: Cost of retained earnings: b. What is Adamson's WACc? Do not round intermediate calculatiens. Round your answer to two decimal places. c. Gnily projects with expected returns that exceed WACC will be accepted. Which projects should Adamsen accept? Project 1 Project 2 Project? Project 4

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