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The company estimates that it can issue debt at a rate of fd=104, and its tax rate is 25%. It can isfue preferred stock that

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The company estimates that it can issue debt at a rate of fd=104, and its tax rate is 25%. It can isfue preferred stock that pays a constant dividend of \$ $6.00 per year at i48.00 per share, Aso, its common stock currently sells for $30.00 per share; the next expected dividend, D. is $3.25; and the dividend is expected to grow at a constant rate of 5% per year. The target captas structure consists of 75% common stock, 15% debt, and 10% preferred steck. 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: b. What is Adamsan's WACC? DO not round intermediate calculations: Round your answer to two decimal places. c. Only projects with expected refurns that exceed wacC will be accepted. Which projects should Adamson accept? Project 1 Project 2 Project 3 Project 4

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