Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of is =97 as long as it finances at its target capitai structure, which Cills for 25% dett and 75% common equity. Its last dividend (D0) was $1.75, its expected constant growth rate is 4%, and its common stock sells for 52.4 . EEC's tax rate is 25%. Two a. What is is cost of common equity? Do not round intermedime calculations, Aound your answer to two decimal places. es b. What is the wACC Do not round intermediate civalabons. Round your answer to two decomsi places. c. Which projects should Empure accept