Back to Assignment Attempts Keep the Highest: /3 10. Problem 10.12 Click here to read the ebook: The Cost of Retained Earnings,r Click here to read the ebook: Composite, or weighted Av erage, Cost of Capital, WAOc WACC and common equity. It can borrow unlimited amounts at an interest rate of rd-11% as long as it finances at its and 50% common equity. Its last dividend (Do) was $3.15, its expected constant growth rate is 3%, and S Empire Electric Company (EEC) uses only debt target capital structure, which calls for SO% debt common stock sells for S21. EEC' are equally risky and about as risky as the firm's existing assets s tax rate is 40%. Two projects are available: Project A has a rate of return of 14%, and Project B's return s 9%. These two projects a. What is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. b. What is the WACC? Round your answer to two decimal places. Do not round your intermediate calculations c. Which projects should Empire accept