please answer and show steps Empire Electric Company (EEC) uses only...
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Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of ra = 10% as long as it finances ot its target capital structure, which calls for 25% debt snd 75%. common equet. fts last dividend (Do) was $2.10, its twpected caristant growth rate is 6%, and its common stock selis for $26. EEC's tox rate is 25%. Two projects are available: Project A has a rate of return of 13 . return is 9%. These two projects are equally risky and about as risky as the firm's exasting assets: a. What is its cast of common equity? Do not round intermediate calculations. Roend your answer to two decimal placei. b. What is the WACC? Do not round intermedute calculations, Round yeur answer to two decimal places. c. Which projects should Envire accept
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