The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of 0.9. The Treasury bill rate is 4%, and the market risk premium is estimated at 7%. BCCIs capital structure is 28% debt, paying an interest rate of 5%, and 72% equity. The debt sells at par. Buildwell pays tax at 21%.

a. What is BCCIs cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)