The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and the market risk premium is estimated at 8%. BCCIs capital structure is 33% debt, paying an interest rate of 8%, and 67% equity. The debt sells at par. Buildwell pays tax at 40%.

a.	What is BCCIs 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

%