Problem 13-4 WACC (LO1) The common stock of Buildwell Conservation & Construction Inc. (BCC) has a beta of 0.9. The Treasury bill rate is 4%, and the market risk premium is estimated at 8%. BCCI's capital structure is 38% debt, paying an interest rate of 7%, and 62% equity. The debt sells at par. Buildwell pays tax at 40%. a. What is BCCI's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Cost of equity capital b. What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) WACC c. If BCCI is presented with a project with an internal rate of return of 12%, should it accept the project if it has the same level of risk as the current firm? Yes No