Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd=10% as fong as it finances at its target capital structure, which calls for 35% debt and 65% common equity. Its last dividend (D0) was $1.85, its expected constant growth rate is 4%, and its common stock seils for $25. a. What is its cost of common equity? Do nok round intermediate calculations. Round your answer to two decimal places. b. What is the WACC? Do not round intermediate calculations, Round your answer to two decimal places. c Which projecty should Empire accept? Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of re: 10% as long as it finances at its target capital structure, which calls for 35% debk and 65% common equity. Its last dividend (D5) was $1.85, its expected constant growth rate is 4%, and its common stock selis for $25. EEC's tax rate is 25%. Two projects are avalable: Project A has a rate of return of 12%, and Project B's return is 10%. These two projects are equally risky and about as risky as the ficm's existing assets. a. What is its cost of common equity? Do not round intermediate calculations, Round your answer to two decimal places. b. What is the Wacc? Do not round intermedlate calculations. Round your answer to two decimal places. c. Which projects eheuld Empire sccept