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The company estimates that it can issue debt at a rate of rdd=11%, 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 rdd=11%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $5.00 per year at $60.00 per share. Also, its common stock currently sells for $44.00 per share; the next expected dividend, Di. is \$5.75; 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 104 preferred stock. a. What is the cost of each of the capital components? Do not round intermedate calculations. Round your answers to two decimal places, Cost of debt: Cost of preferred stock: Cost of retained earnings: 9o b. What is Adamson's WACC? Do not round intermediate calculations, Round your answer to two decimal places

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