Adamson is considering four average-risk projects:

Project	Cost ($million)	Return (%)
A	2	12
B	3	11.5
C	4	10.5
D	5	11
E	2	12.5

The company can issue debt at rd = 9%. It can issue preferred stock that pays a constant dividend of $6 per year at $55 per share. Its common stock currently sells for $30 per share ; the next expected dividend is $2.2 and expected to grow at a constant rate of 5.5% per year. The target capital structure consists of 70% common stock, 10% debt, and 20% preferred stock. Only projects with expected returns that exceed WACC will be accepted. Which project(s) should Adamson accept?

Group of answer choices

A, B, E

E

A, E

A, B, C, D, E

A, B, D, E