Question: Please answer A, B, and C. Excel Online Structured Activity: WACC and optimal captal budget Adamson Corporation is considering four average-risk projects with the following

Please answer A, B, and C.
Please answer A, B, and C. Excel Online Structured Activity: WACC and
optimal captal budget Adamson Corporation is considering four average-risk projects with the
following costs and rates of return: The company estimates that it can

Excel Online Structured Activity: WACC and optimal captal budget Adamson Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of rd=11%, and its tax rate is 35%. It can Issue preferred stock that pays a constant dividend of $3 per year at $58 per share. Also, its common stock currently sells for $34 per share; the next expected dividend, D1,15$4.50; and the dividend is expected to grow at a constant rate of 4% per year. The target capital structure consists of 75% common stock, 15\% debt, and 10% preferred stock. The data has been collected in the Microsoft Excel Onilne flle below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations. Cost of debt Cost of preferred stock Cost of retained earnings common stock, 15% debt, and 109 preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the cost of aach of the capital components? Round your answers to two delimal places. Do not round your intermedlate calculations. Cost of debt Cost of preferred stock 56 Cost of retained eamings b. What is Adamson's WACC? Round your answer to two declmal places. Do not round your intermediate calculations. c. Only projects with expected returns that exceed wacC will be accepted. which projects should Adamson accept

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