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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
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?
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