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The common stock of Buildwell Conservation & Construction, Inc., has a beta of .90. The Treasury bill rate is 3%, and the market risk premium
The common stock of Buildwell Conservation & Construction, Inc., has a beta of .90. The Treasury bill rate is 3%, and the market risk premium is estimated at 6%. BCCIs capital structure is 30% debt, paying a 6% interest rate, and 70% equity. Buildwell pays tax at 30%. a. What is BCCIs cost of equity capital? (Round your answer to 2 decimal places.) Cost of equity capital % b. What is BCCIs WACC? (Round your answer to 2 decimal places.) WACC %
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