The 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 $5.00 per year at $51.00 per share. Also, its common stock currently sells for $34.00 per share; the next expected dividend, D1, is $4.25; 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 places. 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. %