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The company estimates that it can issue debt at a rate of ra=9%, and its tax rate is 25%. It can issue preferred stock that

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The company estimates that it can issue debt at a rate of ra=9%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of 56.00 per year at $50.00 per share. Aiso, its common stock currently sells for $32.00 per share; the next expected dividend, Di, is $3.75; and the dividend is expected to grow at a canstant rate of 5% per year. The target capital structure consitts 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. Cost of debt: Cost, of preferred stock: Cost of retained earnings: b. What is Adamson's WMCC? Do not round intermediate calculations. Round your answer to two decmal piaces. c. Only projects with expected returns that exceed wace will be accepted. Which projects shovid Adamson accept? Project 1 Project? Project 3 Project 4

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