Jarett & Sons's common stock currently trades at $37.00 a share. It is expected to pay an annual dividend of $1.75 a share at the end of the year (D1 = $1.75), and the constant growth rate is 8% a year.

What is the company's cost of common equity if all of its equity comes from retained earnings? Round your answer to two decimal places. Do not round your intermediate calculations. %

If the company issued new stock, it would incur a 20% flotation cost. What would be the cost of equity from new stock? Round your answer to two decimal places. Do not round your intermediate calculations. %   

Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 10% as long as it finances at its target capital structure, which calls for 25% debt and 75% common equity. Its last dividend (D0) was $2.95, its expected constant growth rate is 5%, and its common stock sells for $28. EEC's tax rate is 40%. Two projects are available: Project A has a rate of return of 14%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's existing assets.

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. %

Which projects should Empire accept?

-Select-Project AProject B Banyan Co.’s common stock currently sells for $38.75 per share. The growth rate is a constant 11.2%, and the company has an expected dividend yield of 4%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 14%. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be the cost of new equity? Round your answer to two decimal places. Do not round your intermediate calculations.   Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $87.00, but flotation costs will be 7% of the market price, so the net price will be $80.91 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.