The company estimates that it can issue debt at a rate of , and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $5.00 per year at $50.00 per share. Also, its common stock currently sells for $38.00 per share; the next expected dividend, , is $4.25, 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. What is the cost of each of the capital components? Answer ; ; What is Adamson’s WACC? Answer Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept?

$5300

Step-by-step explanation:

Pounds of food produced - - - - - - profit($)

100 - - - - - - - - - - - - - - - - - - - - (- 11,000)

250 - - - - - - - - - - - - - - - - - - - - - 0

500 - - - - - - - - - - - - - - - - - - - - 10,300

650 - - - - - - - - - - - - - - - - - - - - 11,500

800 - - - - - - - - - - - - - - - - - - - - 9,075

Using the quadratic regression calculator, with a general form of equation:

y=Ax^2+Bx+C

y = 0.0186x^2 - 11.3241x + 8422.2857

With the equation obtained, we can estimate the profit when 350 pounds of food are produced.

Here, x = 350

y = - 0.0817x2 + 102.2355x - 20420.955

y = - 0.0817(350)^2 + 102.2355(350) - 20420.955

y = - 10008.25 + 35782.425 - 20420.955

y = $5353.22