ASPU
Aspen Group Inc
Price:  
0.11 
USD
Volume:  
1,460,937.00
United States | Diversified Consumer Services
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ASPU WACC - Weighted Average Cost of Capital

The WACC of Aspen Group Inc (ASPU) is 6.7%.

The Cost of Equity of Aspen Group Inc (ASPU) is 5.95%.
The Cost of Debt of Aspen Group Inc (ASPU) is 7.00%.

Range Selected
Cost of equity 5.10% - 6.80% 5.95%
Tax rate 0.80% - 1.20% 1.00%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.4% - 6.9% 6.7%
WACC

ASPU WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.28 0.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 6.80%
Tax rate 0.80% 1.20%
Debt/Equity ratio 2.38 2.38
Cost of debt 7.00% 7.00%
After-tax WACC 6.4% 6.9%
Selected WACC 6.7%

ASPU'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 ASPU:

cost_of_equity (5.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.28) + 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.