Attempts 0.5 Keep the Highest 0.5/15 7. Problem 10.12 (WACC) eBook Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of -10% as long as finances at its target capital structure, which calls for 25 deta and its common stock sells for $27. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 125, and Project's return is 10%. These two projects are equally sky and about risky 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. Hound your answer to two decimal places Which projects should Empire accept? PA Po Grade it Now Save & Continue Continue without saving X s at an interest rate ofre -10% as long as it finances at its target capital structure, which calls for 25% debt and 75 common culty. Its tast vidend (D) 12.45.ts espected constant that is a rate of return of 12%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's editing sets. swer to two decimal places cimal places & Continue ue without saving