The common stock of buildwell conservation amp construction


The common stock of Buildwell Conservation & Construction, Inc., has a beta of .95. The Treasury bill rate is 6%, and the market risk premium is estimated at 10%. BCCI’s capital structure is 35% debt, paying a 7% interest rate, and 65% equity. Buildwell pays tax at 30%.

a. What is BCCI’s cost of equity capital? (Round your answer to 2 decimal places.)

Cost of equity capital _____ %

b. What is BCCI’s WACC? (Round your answer to 2 decimal places.)

WACC _______%

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Financial Management: The common stock of buildwell conservation amp construction
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