Brigham Chapter 10 End-of-Chapter Problems Problem 10-12 WACC Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9% as long as it finances at its target capital structure, which calls for 30% debt and 70% common equity. Its last dividend (Do) was $2.95, its expected Brigham Chapter 10 End-of-Chapter Problems last dividend (Do) was $2.95, its expected constant growth rate is 3%, and its common stock sells for $22. EEC's tax rate is 40%. 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 existing assets. a. What is its cost of common equity? Round your anwort to decimal cor no not round Brigham Chapter 10 End-of-Chapter Problems 6 x 2. What is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. % ). What is the WACC? Round your answer to two decimal places. Do not round your intermediate calculations. 5. Which projects should Empire accept? Brigham Chapter 10 End-of-Chapter Problems your intermediate calculations. % ). What is the WACC? Round your answer to two decimal places. Do not round your intermediate calculations. % Which projects should Empire accept? -Select- v