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Glencor is evaluating four average-risk projects with thefollowing costs and rates of return: Project Cost (R) Expected Rateof ReturnProject Cost (R)Expected Rate of Return1200016%2300015%3013,75%4200012,50%The company estimates that it can issue debt at a rate of rd=10%, and its tax rate is 30%. It can issue preferred shares thatpays a constant dividend of R5.00 per year at R49.00 per share.Also, its common shares currently sell for R36.00 per share; thenext expected dividend, D1, is R3.50; and the dividend is expectedto grow at a constant rate of 6% per year. The target capitalstructure consists of 75% common shares, 15% debt, and 10%preferred shares.Required:6.1 What is the cost of each of the capital components? (3)6.2 What is Adams’s WACC? (4)6.3 Only projects with expected returns that exceed WACC will beaccepted. Which projects should Adams accept? (3)