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%. BCCIs capital structure is 37% debt, paying an interest rate of 6%, and 63% equity. The debt sells at par. Buildwell pays tax at 21%.

What is BCCIs cost of equity capital?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

What is its WACC?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

If BCCI is presented with a normal project with an internal rate of return of 10%, should it accept the project if it has the same level of risk as the current firm?