mpire Electic Company (EEC) uses only debt and common equity. It can borrow untimited amounts at an interest rote of ro = 11 th as long as it finances at its target, apital structure, which calls for 25% debt and 75% common equity. Its last dividend (Do), was $1.75, its expected constant growth rate is 4%, and its comminn stock celis for 529 . EEC's tax rate is 25\%. Two projects are avallablel Project A has a rate of retum of 12%, and Project 8 's return is 9%. These two projects are equally rishy and about as nisky as the firm's existing assets. 3. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. b. What is the Wacci Do not round intermediate calculations: Round your answer to two decimal places. c. Which projects should Empire accept