Jarett & Sons's common stock currently trades at $34.00 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (C $1.50), and the constant growth rate is 7% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round Intermediate calculations. Rou your answer to two decimal places, b. If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places % Midwest Water Works estimates that its WACC is 10.51%. The company is considering the following capital budgeting projects. Assume that each of these projects is just as risky as the firm's existing assets and that the firm may accept all the projects or only some of the Which set of projects should be accepted? Project B Size $1 million 2 million 2 million 2 million 1 million 1 million 1 million Rate of Return 12.09 11.5 11.2 11.0 10.7 10.3 10.2 D E -Select- -Select -Select -Select- Select -Select -Select- F G