. You are the CFO of a company that is considering four average risk projects. PROJECT COST EXPECTED RATE OF RETURN 1 $2,000 16% 2 $3,000 15% 3 $5,000 13.75% 4 $2,000 12.50% Your company estimates that it can issue debt at 10%. and its tax rate is 30%. It can also issue preferred stock that pays a constant dividend of $4.50 per year at $45,00 per share. Also, the company common stock currently sells for $38.00 per share. The next expected dividend is $4.25 and the dividend is expected to grow at a constant rate of 5% per year. The target of the company's capital structure is 75% common stock, 15% debt, and 10% preferred stock. a. what is the cost of each of the capital components? b. What is the company WACC?

c. Which projects should be accepted?