Empire Electric Company (EEC) uses only debt and common equity it can borrow unlimited amounts at an interest rate of fa = 97 as lang as it finances at its target capita. structure, which calls for 45% debt and 55% common equity. Its last dividend (Do) was $1.90, its expected constant growth rate is 44 , and its common stock seils for s26. EECs tax rate is 25%. Two grojects are avaliable: Project A has a rate of return of 11%, and Project B's return is 9%. These two projects are equaly rishy and about at rishy as the firm's existing assets a. What is its cost of common equity? Do not round intermedate calculations, Aound your answer to two decimal piaces b. What is the WACC? Do not round intermediste calculations. Aound your answer to two decimal places. c. Which projects thould Empire accept