What is bccis cost of equity capital

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The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of 0.9. The Treasury bill rate is 4%, and the market risk premium is estimated at 6%. BCCI’s capital structure is 36% debt, paying an interest rate of 5%, and 64% equity. The debt sells at par. Buildwell pays tax at 40%. a. What is BCCI’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Reference no: EM131878809

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