Adams Corporation is considering four average-risk projects with the following

Adams 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 40%. It can issue preferred stock that
pays a constant dividend of $4 per year at $57 per share. Also its common stock currently sells for $35 per share; the next expected dividend D1 is $3.25; and the dividend is expected to grow at a constant rate of 7% per year. The target capital structure consists of 75% common stock 15%
debt and 10% preferred stock.