6. Problem 10.11 (WAcC and Percentage of Debt Financing) Hook Industries's capital structure consists solely of debt and common equity. It can iswe debt at fd =84, and its common stock currenty pays a $2.00 dividend per share (Dy = 52.00). The stock's peice is currentiy 522.00 , its dividend is expected to gron at a constant rate of 6\% per year, its tax rate is 25%, and its wacc is 14.10\%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. llound your answer to two decimal places. Emplen Electric Company (EEC) uses only debt and common equity. It can borrow inllimited amounts at an interest rate of Pd =11 as long as it finances at is target capial structure, which calis for 45% debt and 55% common equity. Its last aividend (D0) was $2.45, its expected conistant growth rate is 6%, and its common stock sells for $20. EECs tax rate is 25%. Two projects are avaltable: Project A has a rate of retum of 15%, and Project B's return is 8%, These two projects are equally risky and about as risky as the firm's existing assets. a. What is its cost of commen equity? Do not round intermediate calculations. Pound your arswer to two decimal places. \%. b. What is the WACC? Do not round intermediate calculations: Round your answer to two decimal places. c. Which projects should Empire accept