Problem $10\mathrm{.}12($WACC$)$

eBook return of $14\%,$ and Project B$\text{'}$s return is $10\%.$ 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?

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