The company estimates that it can issue debt at a rate of rd = 11%, and its tax rate is 40%. it can issue preferred stock that pays a constant dividend of $4 per year at $47 per share. also, its common stock currently sells for $30 per share; the next expected dividend, d1, is $3.75; and the dividend is expected to grow at a constant rate of 5% per year. the target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock.1. what is the cost of each of the capital components? round your answers to two decimal places. a. cost of debt %b. cost of preferred stock %c. cost of retained earnings %2. what is adams' wacc? round your answer to two decimal places.

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents