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Problem 13-8 WACC (LO3) The common stock of Buildwell Conservation & Construction, Inc., has a beta of.95. The Treasury bill rate is 6%, and the
Problem 13-8 WACC (LO3) The common stock of Buildwell Conservation & Construction, Inc., has a beta of.95. The Treasury bill rate is 6%, and the market risk premium is estimated at 10%. BCCI's capital structure is 35% debt, paying a 7% interest rate, and 65% equity. Buildwell pays tax at 30%. a. What is BCCI's cost of equity capital? (Round your answer to 2 decimal places.) Cost of equity capital % b. What is BCCI's WACC? (Round your answer to 2 decimal places.) WACC | %
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