Adamson Corporation is considering four average$-$risk projects with the following costs and rates of return:ProjectCostExpected Rate of Return$1$$$2,00016\mathrm{.}00\%23,00015\mathrm{.}0035,00013\mathrm{.}7542,00012\mathrm{.}50$ The company estimates that it can issue debt at a rate of rd $=9\%,$ and its tax rate is $25\%.$ It can issue preferred stock that pays a constant dividend of $$5\mathrm{.}00$ per year at $$55\mathrm{.}00$ per share. Also, its common stock currently sells for $$40\mathrm{.}00$ per share; the next expected dividend, D$1,$ is $$4\mathrm{.}25$; and the dividend is expected to grow at a constant rate of $6\%$ per year. The target capital structure consists of $75\%$ common stock, $15\%$ debt, and $10\%$ preferred stock.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: $\%$Cost of retained earnings: $\%$What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. $\%$Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept?Project $1$Project $2$Project $3$Project $4$