Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rid =11% as long as it finances at its target capital structure, which calis for 45% debt and 55% common equity. Its last dividend (D.) was $2.35, its expected constant growth rate is 3%, and its common stock sells for $25. EEC's tax rate is 25%. Two projects are avallable: Project A has a rate of retum of 14%, and Project B's return is 9%, These two projects are equally rishy and about as risky as the ffim's existing assets. a. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. D. What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. c. Which projects should Empire accept