(please show formulas if using excel)

A.Find retained earnings for the year

B. Find the break even point for total capital to be raised

C.Find the cost of: Preffered stock, reinvested earnings and new common stock.

D. Find wacc if the company needs to issue new stock and if they dont need to issue new stock.

E. what is the optimal capital budget?

Corporation Adams is considering four average risk projects with the followi ng cost and returns: Project Cost $2,000 $3,000 $5.000 $2,000 1 Expected Rate of Return 16.00% 1 5 .00% 13.80% 12.50% The company estimates that it can issue debt at a rate ofr,-10% with no significant flotation cost (the company ignores debt flotation costs when calculating WACC). In addition, it can issue preferred stock that pays a constant dividend of $5.00 per year at $49 per share and a flotation cost of 4%. Moreover, its common stock currently sells for $36 per share, the next expected dividend is $3.50; the dividend is expected to grow at a constant rate of 600 per year, and flotation cost for new issues is 10% of the stock price. The company expects to earn this year $12,000, and it pays 50% of earnings as dividends. The target capital structure is 75% common stock, 15% debt and 10% preferred stock. The company tax rate is 40%