Attempts Average/3 9. Problem 10.12 (WACC) eBook Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of testing as it finances atstarot capital structure, which calls for 40% debt and 60% common equity. Its fast dividend (D) was 13.25, its expected constant growth ratoles, and is common stock sells for $25. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 15%, and Project's return is 11. These two projecte welky and about as risky as the firm's existing assets. a. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places, 96 b. What is the WACC? Do not round intermediate culations, Round your answer to two decimal places % c. Which projects should Empire accept? Select Grade it Now Save & Continue