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The company estimates that it can issue debt ot a rate of rd=996, and its tax rate is 25%. It can issue preferred stock that

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The company estimates that it can issue debt ot a rate of rd=996, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of s4.00 per year at $53.00 per share. Also, its common stock currently sells for $46.00 per share; the next expected dividend, 0 t, is $5.75; and the dividend is expected to grow at a constant rate of 490 per year. The target capital structure consists of 7546 common stock, 15% debt, and 10%0 preferred stock. a. What is the cost of each of the copital components? Do not round intermediate calculotions. Round your answers to two decimal piaces. Cost of debt: Q1. Cost of preferred stock: * Cost of retained earnings: 4 b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. W c. Only projects with expected returns that exceed WACC wil be accepted. Which projects should Adamson accept? Project 1 Project 2 Project 3 Project 4

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