the common stock of buildwell conservation & construction inc. has a beta of .9 the...
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the common stock of buildwell conservation & construction inc. has a beta of .9 the treasury bill rate is 4%, and the market risk premium is estimated at 10%. BCCIs capital structure is 40% debt, paying an interest rate of 9%, and 60% equity. the debt sells at par, buildwell pays tax at 21%. what is BCCIs cost of equity capital? what is its WACC? if BCCI Id presented with a normal project with an internal rate of return of 12%, should it accept the project? it has the same level of risk as the current firm?
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