The common stock of Buildwell Conservation & Construction, Inc. (BCCI), has a beta of 0.89. The Treasury bill rate is 2 percent and the market risk premium is estimated at 5 percent. BCCI's capital structure is 18 percent debt paying a 5 percent interest rate, and 82 percent equity. What is BCCI's cost of equity capital and its WACC? Buildwell's tax rate is 35 percent.