The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 8.0 million shares outstanding, is now (1/1/22) selling for $75.00 per share. The expected dividend at the end of the current year (12/31/22) is 55% of the 2021 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.) The current interest rate on new debt is 8%; Foust's marginal tax rate is 25%; and its target capital structure is 35% debt and 65% equity. a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places. % Calculate Foust's cost of common equity. Calculate the cost of equity as r5=D1/P0+g. Do not round intermediate calculations. Round your answer to two decimal places. b. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places. Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd=9% as long a it finances at its target capital structure, which calls for 30% debt and 70% common equity. Its last dividend ( D0) was $3.00, its expected constant growth rate is 4%, and its common stock sells for $29. EEC's tax rate is 2500 . Two projects are available: Project A has a rate of return of 14%, and Project B's return is 11%. 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