Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of ra - 10% as long as it finances at its target capital structure, which calls for 40% debt and 60% common equity. Its last dividend (De) was $2.20, its expected constant growth rate is 6%, and its common stock sells for $29. LEC's tax rate is 25%. Two projects are available: 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 equity? Do not 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 projects should Empire accept? Project Grade it Now Save & Continue eBook Problem WTON Jarett & Sons's common stock currently trades at $27.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D; - $1.25), and the constant growth rate is 8% a year What is the company's cost of common equity fall of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places b. If the company issued new stock, it would incur a 15% notation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places