The common stock of Bulldwell Conservation & Construction Inc. (BCCI) has a beta of 0.9. The Treasury bill rate is 4% and the market risk premium is estimated at 10%. BCCI's capital structure is 35% debt, paying an interest rate of 10% and 65% equity. The debt sells at par. Bulldwell pays tax at 21% a. What is BCCI's cost of equity capital? (Do not found 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.) c. If BCC 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? Cost of equity capital b. WACC Accept the project