AMCF WACC - Weighted Average Cost of Capital

The WACC of Andatee China Marine Fuel Services Corp (AMCF) is 13.3%.

The Cost of Equity of Andatee China Marine Fuel Services Corp (AMCF) is 22,354,185.20%.

The Cost of Debt of Andatee China Marine Fuel Services Corp (AMCF) is 18.30%.

	Range	Selected
Cost of equity	15,181,019.10% - 29,527,351.30%	22,354,185.20%
Tax rate	31.40% - 33.90%	32.65%
Cost of debt	12.70% - 23.90%	18.30%
WACC	9.4% - 17.1%	13.3%

WACC

AMCF WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	3.3002207e+06	5.27274043e+06

Additional risk adjustments	0.0%	0.5%
Cost of equity	15,181,019.10%	29,527,351.30%

Tax rate	31.40%	33.90%
Debt/Equity ratio	2.13622807e+07	2.13622807e+07
Cost of debt	12.70%	23.90%

After-tax WACC	9.4%	17.1%


Selected WACC	13.3%

AMCF'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 AMCF:

cost_of_equity (22,354,185.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.3002207e+06) + 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.