The common stock of Buildwell Conservation & Construction Incorporated (BCCI) has a beta of 0.9. The...

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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 9%. BCCI's capital structure is 26% debt, paying an interest rate of 7%, and 74% 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? > Answer is complete but not entirely correct. a. Cost of equity capital 12.00 % b. WACC c. Accept the project Yes 10.32 x % 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 9%. BCCI's capital structure is 26% debt, paying an interest rate of 7%, and 74% 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? > Answer is complete but not entirely correct. a. Cost of equity capital 12.00 % b. WACC c. Accept the project Yes 10.32 x %