ampts Keep the Highest/10 Problem 10.12 (WACC) A-Z cool mpire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate ofre -10% as long as it finances at its target capital Cucture, which calls for 30% debt and 70% common equity. Its last dividend (D) was $3.05, its expected constant growth rate is 5%, and its common stock sells for $26. EEC's xrate is 25%. Two projects are available: Project A has a rate of return of 15%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's isting 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 found intermediate calculations. Round your answer to two decimal places Which projects should Empire accept? Grade it Now Save & Continue Continue without saving A Assignment 10: Chapter 10 End-of-Chapter Problems X Back to Assignment Bols Atempts Keep the Highest/10 6. Problem 10.12 (WACC) A-Z Book Empire Electric Company (EEC) uses only debt are common egoity. It can borrow unlimited amounts at an interest rate of re- 10% as long as finances at its target capita structure, which calls for 30% debt and 70 common equity. Its last dividend (D) was $3.05, its expected constant growth rates, and its common stock sells for $26 EECS tax rate is 25%. Two projects are availabler Project A has a rate of return of 18 and Projects return is 10%. These two projects are equally risky and about as risky as the tems wisting assets a. what is its cost of common cauty? Do not round Intermediate calculation. Rount our answer to two decimal places What is the WACC? De not round Intermediate calculation. Round your answer to two decimal places Chest c. Which projects should Empre accept? Grade it Now Save & Continue Continue without saving