ACCA
Acacia Diversified Holdings Inc
Price:  
0.00 
USD
Volume:  
86,050.00
United States | Pharmaceuticals
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ACCA WACC - Weighted Average Cost of Capital

The WACC of Acacia Diversified Holdings Inc (ACCA) is 3.8%.

The Cost of Equity of Acacia Diversified Holdings Inc (ACCA) is 3,294.70%.
The Cost of Debt of Acacia Diversified Holdings Inc (ACCA) is 5.00%.

Range Selected
Cost of equity 20.20% - 6,569.20% 3,294.70%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 3.9% 3.8%
WACC

ACCA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 3.55 1172.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 20.20% 6,569.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 22199.52 22199.52
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 3.9%
Selected WACC 3.8%

ACCA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ACCA:

cost_of_equity (3,294.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.55) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.