Empire Electric Company (EEC) uses only debt and common equity. It can berrow unimited amounts at an interest rate of rd =9% as long as it finances at is target capital structure, which calls for 25% debt and 75% common equity, Its last dividend (D0) was $2.40, its expected constant growth rate is 3%, and its common stocik sedis for $22. EECs tax rate is 25%. Tho projects are availoble: Project A has a rate of return of 15%, and Project B's return is 9%. These two projects are equally risky and about as risky as the firm's existing assets. a. What is its cost of common equily? Do not round intermed ato calculations. Round your answer to two dedmat places. b. What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. c. Which projects should Empire accept