Coat $2,000 $3,000 $5,000 $2,000
Expocoel Rete f Roun 16.00% 15.00% 13.75% 12.50%
2 m 4
a. What is the cost of each of the capital components?
Cost of debt:
Cost of preferred stock:
Cost of retained earnings:
b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places.
%
c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept?
Project 1 Project 2 Project 3 Project 4