The company estimates that it can issue debt at a rate of rd=9%, 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 $40.00 per share; the next expectec dividend, D1, is $4.75; and the dividend is expected to grow at a constant rate of 5% 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. \begin{tabular}{l|l} Cost of debt: & % \\ Cost of preferred stock: & % \\ Cost of retained earnings: & % \end{tabular} b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. %