The common stock of Buildwell Conservation & Construction Incorporated (BCCI) has a beta of 0.9. The Treasury bill rate is 4%, and the market risk premium is estimated at 7%. BCCI's 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 BCCI's cost of equity capital? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What is its WACC? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. If BCCI is presented with a normal project with an internal rate of return of 12%, should it accept the project if it has the same level of risk as the current firm? a. Cost of equity capital b. WACC c. Accept the project % %

The common stock of Buildwell Conservation & Construction Incorporated (BCC) has a beta of 0.9 . The Treasury bill rate is 4%, and the market risk premium is estimated at 7\%. BCCrs capital structure is 28% debt, paying an interest rate of 5%, and 72% equity. The debt sells at par Buldwell pays tax at 21%. 0. What is BCCi's cost of equity capital? Note: Do not round intermediate calculotions. Enter your onswer as a percent rounded to 2 decimal ploces. b. What is its WACC? Note: Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal ploces. c. If BCCl is presented with a normal project with an internal rate of return of 12%, should it accept the project if it has the same level of risk as the current firm