WACC Empire Electric Company (EEC) uses only debt and common equity. It can borrow unchitectimiculls at an interest rate of 1, - 9% as long as it finances at its target capital 522 %, Its Ox. lete drojects are available: Project A has a rate of return of 12.5% and Project B' return is 11.5%. These two projects are equally risky and about as risky as the firm's existing assels. a. What is its cost of common equity? b. What