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.