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The company estimates that it can issue debt at a rate of rd=11%, and its tax rate is 25%. ft can isfue preferred stock that

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The company estimates that it can issue debt at a rate of rd=11%, and its tax rate is 25%. ft can isfue preferred stock that pays a constant dividend of 34.00 per year at $45.00 per share. Aso, its common stock currently selis for $39.00 per share; the next expected dividend, Di, is $4.25; 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. B. What is the cost of each of the capitial components? Do not round intermediate calculstions. Round your answers to two decimal places. Cost of debte Cost of preferred stock: Cost of retained earnings: b. What is Adamson's WAcc? Do not round intermediate caiculabions: round your answer to two decimal places. c. Only projects with expected returns that exceed WACc nill be accepted. Which projects should Adamson sccept? Project 1 Project 2 Project 3 Project 4

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