What is bccis cost of equity capital

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Reference no: EM131222371

WACC. The common stock of Buildwell Conservation and Construction Inc. (BCCI) has a beta of .9. The treasury bill rate is 4%, and the market risk premium is estimated at 8%. BCCI's capital structure is 30% debt, paying a 5% interest rate and 70% equity. Buildwell pays tax at 40%.

a. what is BCCI's cost of equity capital?

b. what is WACC?

c. if BCCI is presented with a project with an internal rate of return of 12%, should it accept the project?

Reference no: EM131222371

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