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please answer all soon Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd
please answer all soon
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd a 10% as long as it finahces at its target capital structure, which calis for 40% debt and 60% common equity, its last dividend (D.) was $2.75, its expected constant growth rate is 6 th, and its common stock selis for $24. EEC's tax rate is 25%. Two projects are avallable: Project A has a rate of return of 15%, and Project B's retum is 11mb. These two projects are equally risky and about as risky as the firm's existing assets. 8. What is it cost of common equity? Do hot 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 thould Empire accept? Trovis tndustriet pisht to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $85,50, but flototion costs wili be 994 in of the menwet price, so the net price will be $77.81 per share, What is the cost of the preferred stock, including flotation? Round your answer to two cecimal pleces Step by Step Solution
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